RBC Capital raised its price target on Bausch & Lomb Corp. (NYSE: BLCO) to $21.00 from $19.00 and left its rating at Outperform, a move grounded in updated financial assumptions and changing market dynamics. The firm now models fourth-quarter 2025 revenue of $1,385 million and adjusted EBITDA of $324 million, each a touch higher than consensus estimates of $1,384 million and $322 million, respectively.
RBC highlights that reported Q4/25 figures should receive an approximate $28 million boost from foreign-exchange-related revenue tailwinds. The company is scheduled to release the quarter's results on February 18, 2026, before the market opens.
The decision to lift the target to $21 reflects several inputs, including a re-rating among key peers, an increased probability that Bausch & Lomb will pursue a separation - with RBC putting that likelihood up from 20% to 30% over the next 12 months - and higher internal estimates informed by updated foreign-exchange assumptions and IQVIA prescription data.
RBC expects investor attention during the fourth-quarter release to concentrate on 2026 guidance and developments in prescription therapies for dry eye disease. The firm specifically notes that the product Miebo is expected to reach profitability in 2026, which RBC sees as an important milestone for the company’s pipeline economics.
Investor Day targets set by Bausch & Lomb were also reiterated in analyst commentary. At that event the company outlined a revenue growth goal of 5-7% through 2028 and an adjusted EBITDA margin objective of 23% by the end of that period. Following the Investor Day disclosures, RBC previously raised its price target to $19 while maintaining an Outperform view, citing the company's favorable margin trajectory.
Other broker actions tracked in recent coverage show a mix of sentiment. Jefferies raised its price target to $20, pointing to the company’s growth outlook and a long-range plan that the firm said exceeds consensus expectations on EBITDA margin. By contrast, Stifel reconfirmed a Hold rating, flagging concerns about Bausch & Lomb’s competitive position in certain growth markets. Needham also kept a Hold rating, while acknowledging that the company’s revenue goals are in line with its expectations and that the adjusted EBITDA margin outlook surpasses Needham’s estimates.
The collection of analyst moves underscores a blend of optimism around margin improvement and cautiousness about market positioning. RBC’s model updates - including foreign-exchange adjustments and fresh prescription data - are principal inputs for its higher target and maintained Outperform stance.
Investors will be watching the company’s February results and 2026 guidance closely, as near-term revenue and margin trajectories and the fate of pipeline therapeutics like Miebo will shape market expectations.