Bausch Health Companies Inc’s (NYSE: BHC) growth drivers will become “more tangible” in 2019, and shares could appreciate as the company continues to demonstrate good execution, according to Mizuho Securities.
Mizuho’s Irina Koffler maintained a Buy rating on Bausch Health Companies while raising the price target from $39 to $41.
The revenue forecast for 2019 has been raised by $133 million to around $8.39 billion, mainly to reflect strength in the company’s Salix subsidiary, Koffler said in a Monday note.
The “significant seven,” or the Canadian drugmaker's seven drugs that have the potential to reach $1 billion in peak sales by 2023, should contribute $282 million to adjusted EBITDA in 2019, the analyst said. The company’s guidance reflects a $300-million contribution; the difference is mainly due to the Duobrii delay, she said.
Duobrii could be approved soon and become the next catalyst for Bausch Health stock, Koffler said.
The drugmaker has guided to a revenue CAGR of 4-6 percent and an adjusted EBITDA CAGR of 5-8 percent for 2019-2022, according to Mizuho.
This long-term guidance appears “directionally correct” and will be supported by the acquisition of Synergy Pharmaceuticals Inc (OTC: SGYPQ), the analyst said.
“Most companies struggle to attain long-term guidance targets, but we believe that Bausch's 2019-2022 outlook is within reach.”
Bausch Health Companies were trading up 1.96 percent to $24.45 at the time of publication Monday.
Morgan Stanley Turns Bullish On Bausch Health: 'We Expect 2018 To Be The Last Year Of Declining Financials'
Latest Ratings for BHC
|Dec 2018||H.C. Wainwright||Upgrades||Neutral||Buy|
View More Analyst Ratings for BHC
View the Latest Analyst Ratings
See more from Benzinga
- KeyBanc Ups DocuSign Price Target On Q4 Beat, Customer Scale
- Raymond James: Jabil Faces A Tough Environment, But Is Focusing On The Right Metrics
- AT&T Could Find Upside With Earnings Growth, Delevering, Raymond James Says In Upgrade
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.