Bausch Health Solvency Remains A Concerns, Analyst Downgrades Stock
Portfolio Pulse from Vandana Singh
Bausch Health Companies (NYSE:BHC) reported a second-quarter 2024 GAAP EPS of $0.03, missing the consensus of $0.28. Revenues were $2.403 billion, up 11% year-over-year, beating the consensus of $2.339 billion. Despite positive revenue growth, Piper Sandler downgraded Bausch to Underweight from Neutral, citing solvency concerns with $9.4 billion in debt maturing in 2027/2028 and Xifaxan losing exclusivity by January 2028. BHC stock is down 6.80% at $5.69.
August 02, 2024 | 6:06 pm
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Bausch Health Companies reported a Q2 2024 GAAP EPS of $0.03, missing the consensus of $0.28. Revenues were $2.403 billion, up 11% year-over-year, beating the consensus of $2.339 billion. Piper Sandler downgraded Bausch to Underweight from Neutral, citing solvency concerns with $9.4 billion in debt maturing in 2027/2028 and Xifaxan losing exclusivity by January 2028. BHC stock is down 6.80%.
The significant miss on EPS, despite revenue growth, combined with the downgrade from Piper Sandler due to solvency concerns, is likely to negatively impact BHC's stock price in the short term. The market has already reacted with a 6.80% decline.
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IMPORTANCE 90
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