Applying a 10x-11x 2026E EV/EBITDA, we arrive at a target price of $16, from a range of $15-$18. In valuing BLCO, we believe that there is no straightforward comparison for the stock, with differences versus other ophthalmology and traditional MedTech companies. Thus, we are applying a discount compared to both sets of peers, given that it is in the early stage of its stand-up phase and the uncertainty of the new entity. 

Risks specific to Bausch + Lomb and to its ability to reach our target price include: 1) a higher percentage of revenue in APAC region compared to other companies; 2) competition with new technology entering the market; 3) execution of the product pipeline and new product development; 4) the changing reimbursement landscape; and 5) management execution.

Positive or adverse developments in these risk factors could cause the share price to remain above or fall below our target price.