Piper downgrades Bausch Health to Underweight with solvency ‘top of mind’

Piper Sandler last night downgraded Bausch Health to Underweight from Neutral with a price target of $3, down from $9. With $9.4B in debt coming due in the 2027/2028 timeframe, along with Xifaxan losing exclusivity in January 2028 at the latest, solvency “will remain top of mind” despite management’s best efforts to change the subject, the analyst tells investors in a research note. The firm believes further multiple compression is warranted in the context of concerns about the longer-term solvency of Bausch given the wave of upcoming maturities in debt due and the outsized importance of Xifaxan.