Wells says a potential Bausch + Lomb sale would make sense given valuation

Wells Fargo notes that Financial Times is reporting that Bausch + Lomb (BLCO) is exploring a sale as a way to separate from its parent company, Bausch Health (BHC). The article says Bausch + Lomb is likely to draw interest from private equity and that any deal to sell the business would likely come at a sizable premium to the current valuation as Bausch + Lomb has been performing well. The firm believes a potential sale would make sense given the steep valuation discount between Bausch + Lomb and its closest eye care peers. Wells has an Overweight rating on Bausch + Lomb shares with a price target of $23.