BLCO Stock Forecast & Price Target

Bausch & Lomb is well positioned because its portfolio is increasingly concentrated in higher-growth, higher-margin categories, led by MIEBO in dry eye, premium IOLs, and premium daily SiHy contact lenses. The company’s dry-eye franchise benefits from durable prescription growth, rapid symptom relief that expands the patient funnel, and improving gross-to-net on Xiidra, while its surgical business is gaining share as enVista Envy and the 2027 launch of enVista Beyond broaden a premium IOL lineup in a faster-growing market. Financially, management expects 2026 revenue growth of 7.9% and EBITDA of $1.2Bn, and the stock still trades at a multi-turn EV/EBITDA discount to peers despite clear evidence of margin expansion and product innovation.

Bausch & Lomb is facing a cautious fundamental outlook because multiple growth drivers could disappoint at once, including MIEBO sales missing the FY2026 guide, weaker-than-expected contact lens demand, and softer OTC volumes if consumer sentiment deteriorates. Its core contact lens market is only about a $11Bn global category growing 4%-6% per year, but the company still cites a 20-25% first-year discontinuation rate and depends on premiumization rather than broad wearer growth to expand. The Surgical segment is also vulnerable if premium IOL rollout slows, while the stock’s leverage remains notable at $13.26 per share of net debt against projected adjusted EPS of just $0.82 per diluted share.