RBC Capital reiterates Bausch & Lomb stock rating on DED momentum

RBC Capital has reaffirmed its Outperform rating and $21.00 price target on Bausch & Lomb Corp. (NYSE:BLCO) stock. The firm anticipates third-quarter 2026 revenue of $1,375 million, aligning with the current consensus of $1,371 million. Adjusted EBITDA is projected at $275 million, matching the $272 million consensus estimate. These projections reflect the company's recent revenue growth of nearly 9% over the past year, reaching $5.32 billion in 2025.

Analysts predict profitability for the year with an EPS forecast of $0.82. The quarter will see $4 million in foreign-exchange-driven revenue headwinds. Bausch & Lomb's focus areas include its dry eye disease prescription franchise, where Miebo recently secured the number one U.S. branded status. Upcoming product launches include Elios MIGS approval, enVista Beyond submission, and seeLyra European Union rollout.

Recently, the FDA issued a Warning Letter to Bausch & Lomb's Tampa facility, escalating from the Official Action Indicated status mentioned in the company's 10-Q filing. Notably, BL1243, an oral dry age-related macular degeneration program featuring tonabersat, is of particular interest. Earlier this quarter, Bausch & Lomb reported robust second-quarter 2026 results, with $1.394 billion in total revenue, surpassing estimates of $1.37 billion and marking a 9.1% year-over-year growth.

Adjusted earnings per share of $0.15 met analysts' forecasts. The company also raised its full-year revenue and EBITDA guidance, signaling confidence in its growth strategy. H.C. Wainwright recently increased its price target to $21, maintaining a Buy rating. However, Stifel has reissued a Hold rating with a $16 price target following mixed results from a Phase 2 trial of the company's dual-action dry eye treatment.