Jefferies sees more upside for Bausch Health if Xifaxan ruling positive

Jefferies notes that oral arguments in the Fed Court of Appeals related to Xifaxan were held on January 8 and the firm expects that the ruling will be issued “any day now.” Bausch Health (BHC) shares have traded 30% higher in the past three months leading into the court ruling, but it sees significantly more upside from here assuming a favorable ruling, notes the analyst, who assumes the company will be successful in its defense of Xifaxan, “inevitably increasing the probability” of the Bausch + Lomb (BLCO) spin. Jefferies keeps a Buy rating and $16 price target on Bausch Health shares.