Analysts rate Bausch Health Companies Inc. (BHC:NYE)with a Strong Buy

STA Research
by: STA Research

Based on the Bausch Health Companies Inc. stock forecasts from 3 analysts, the average analyst target price for Bausch Health Companies Inc. is USD 19.50 over the next 12 months. Bausch Health Companies Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Bausch Health Companies Inc. is Slightly Bearish, which is based on 3 positive signals and 5 negative signals. At the last closing, Bausch Health Companies Inc.’s stock price was USD 10.84. Bausch Health Companies Inc.’s stock price has changed by -5.20% over the past week, -11.33% over the past month and -62.71% over the last year.

Yesterday RBC Royalbank maintained Bausch Health Companies Inc. with an Outperform rating and lowered the target price to $17 from $21 on the company’s stock.

Bausch Health Companies Inc. and its subsidiaries develop, manufacture, and distribute pharmaceutical, medical device, and OTC products principally for eye, gastrointestinal, and dermatology. The company operates through five segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada. Address: 2150 St. ElzEar Boulevard West, Laval, QC, Canada, H7L 4A8

 

What we like:

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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