Bausch initiated with Market Perform on Xifaxan risk at Raymond James

Raymond James analyst Michael Freeman initiated coverage of Bausch Health with a Market Perform rating and $8 price target. The company’s well-diversified portfolio has proven “robust against a wide variety of market conditions and should generate solid cash flow for the next several years,” the analyst tells investors in a research note. However, the firm says Bausch’s product Xifaxan faces loss of exclusivity in early 2028, with patent litigation potentially moving that earlier. This represents a big challenge for the company and raises questions about its capacity to service its significant debt load, contends Raymond James. “Should things go awry with Xifaxan and/or the BLCO spin, we believe BHC could potentially be at risk of insolvency,” it adds.