Bausch + Lomb price target raised to $23 from $19 at BofA

BofA analyst Craig Bijou raised the firm’s price target on Bausch + Lomb (BLCO) to $23 from $19 and keeps a Buy rating on the shares, citing a higher multiple applied to its 2023 EBITDA estimate after B+L announced an acquisition of Novartis’ (NVS) dry eye disease drug, Xiidra, and other pipeline technologies for $1.75B upfront cash and up to $750M in sales and commercial milestones. The firm, which calls the deal “a meaningful positive,” thinks the deal helps close the valuation gap to peers, but argues that Bausch + Lomb still warrants a discount given margins will still trail peers post-deal and the view that the Bausch Health (BHC) spin remains an overhang.