Stifel raised its price target on Bausch & Lomb Corp. (NYSE:BLCO) shares to $16 from $15 while maintaining a Hold rating, following the release of the company's fourth-quarter 2025 results.
For the quarter, Bausch & Lomb reported revenue growth of 6.9% in constant currency, a figure that missed the Street estimate of 7.4%. Within the quarter, the Miebo brand produced $112 million in sales, materially above Stifel's earlier $80 million projection. The Contact Lenses business expanded by 8% in constant currency, outpacing the Street's 7% expectation. On a full-year basis, BLCO recorded revenue of $5.1 billion, representing overall growth of 6.47%.
Adjusted EBITDA for the fourth quarter reached $330 million, surpassing the Street estimate of $320 million and implying an incremental margin of 57%. Stifel noted that the company’s 2026 guidance midpoints imply a 41% drop-through rate. Bausch & Lomb's last twelve months EBITDA sits at $665.33 million, and the firm reported a gross profit margin of 59.81%.
Certain operational developments were highlighted in company reporting. EnVista's return to market came in ahead of schedule, and US Generics regained year-over-year growth. Conversely, the Surgical and Consumer segments failed to meet expectations.
Stifel supplemented its analysis with survey diligence, collecting responses from 49 participants. The survey increased the firm's confidence in Miebo's capacity to sustain its early success, although Stifel flagged uncertainty about maintaining momentum if category spending moderates in a highly promotional environment.
InvestingPro data cited in reports indicates that, despite Bausch & Lomb not being profitable over the last twelve months, analysts expect the company to reach profitability this fiscal year. Separate coverage of the fourth-quarter results described the revenue outcome as having surpassed analyst expectations while noting that earnings did not meet projected estimates, producing a mixed set of results for the period.
Taken together, Stifel's adjustment to the price target reflects the firm's reassessment of product-level performance and margin dynamics following the quarter. The research house left its rating unchanged even as it raised the target, signaling a measured response to uneven results across the company's portfolio.