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Bausch Health Companies Inc. (BHC) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5Moderate Confidence

Healthcare · Drug Manufacturers - Specialty & Generic

Sell if holding. At $6.17, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Xifaxan (85.0%); Concentration risk — Product: Arestin (95.0%).

Bausch Health is a global specialty pharma and medical device company with five segments: Salix (GI, led by Xifaxan at ~85% of Salix revenues), International, Solta Medical (aesthetic devices), Diversified, and ~88%-owned Bausch + Lomb (eye health). 2025 revenues were $10.27B;... Read more

Stop $5.76Target $6.59(analyst − 13%)A.R:R 0.4:1
Analyst target$7.57+22.7%7 analysts
$6.59our TP
$6.17price
$7.57mean
$9

Sell if holding. At $6.17, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Xifaxan (85.0%); Concentration risk — Product: Arestin (95.0%). Chart setup: Death cross but MACD improving, RSI 68. Score 6.1/10, moderate confidence.

Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Positive momentum
Risks
Concentration risk — Product: Xifaxan (85.0%)
Concentration risk — Product: Arestin (95.0%)
Thin upside margin: 6.3%

Key Metrics

P/E (TTM)13.3
P/E (Fwd)1.4
Mkt Cap$2.1B
EV/EBITDA6.7
Profit Mgn1.5%
ROE436.4%
Rev Growth9.3%
Beta0.40
DividendNone
Rating analysts9

Quality Signals

Piotroski F7/9

Options Flow

P/C0.95neutral
IV74%elevated
Max Pain$1-83.8% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHProductXifaxan85%
    10-K Item 1: 'Sales of the Xifaxan® product line currently represent approximately 85% of the Salix segment revenues'
  • HIGHProductArestin95%
    10-K Item 1: 'Arestin®...represents approximately 95% of Dentistry revenues'

Material Events(8-K, last 90d)

  • 2026-03-02Item 5.02LOW
    Bausch Health amended 2023 PSU awards for CEO Thomas Appio and Seana Carson to settle in cash rather than stock on the March 3, 2026 vesting date. Routine compensatory arrangement modification; no officer departure.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.0
Support Resistance
0.9
Gap
4.0
52w Position
4.3
GatesA.R:R 0.4 < 1.5@spotDeath cross (50MA < 200MA)Momentum 7.6>=5.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
68 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $5.19Resistance $6.29

Price Targets

$6
$7
A.Upside+6.8%
A.R:R0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Reward/Risk 0.4:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-04-29 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BHC stock a buy right now?

Sell if holding. At $6.17, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Xifaxan (85.0%); Concentration risk — Product: Arestin (95.0%). Chart setup: Death cross but MACD improving, RSI 68. Prior stop was $5.76. Score 6.1/10, moderate confidence.

What is the BHC stock price target?

Take-profit target: $6.59 (+6.4% upside). Prior stop was $5.76. Stop-loss: $5.76.

What are the risks of investing in BHC?

Concentration risk — Product: Xifaxan (85.0%); Concentration risk — Product: Arestin (95.0%); Thin upside margin: 6.3%.

Is BHC overvalued or undervalued?

Bausch Health Companies Inc. trades at a P/E of 13.3 (forward 1.4). TrendMatrix value score: 8.7/10. Verdict: Sell.

What do analysts say about BHC?

9 analysts cover BHC with a consensus score of 2.4/5. Average price target: $8.

What does Bausch Health Companies Inc. do?Bausch Health is a global specialty pharma and medical device company with five segments: Salix (GI, led by Xifaxan at...

Bausch Health is a global specialty pharma and medical device company with five segments: Salix (GI, led by Xifaxan at ~85% of Salix revenues), International, Solta Medical (aesthetic devices), Diversified, and ~88%-owned Bausch + Lomb (eye health). 2025 revenues were $10.27B; Xifaxan generated $2.2B.

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