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  5. BHC: What is your current view on Bausch Health Companies? [Bausch Health Companies Inc.]
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Investment Q&A

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Q: What is your current view on Bausch Health Companies? It looks like a good price now. Or, would you prefer any of other names in health care now such as PFE, LLY or JNJ? Already hold ABBV and MRK.

Asked by Gerry on March 29, 2022
5i Research Answer:

BHC is very cheap at 5X earnings, but net debt is still more than 10X cash flow, and this continues to be our prime concern. EPS growth is expected to be very strong this year, levelling off in 2023. The Bausch & Lomb spin off expected later this year should be good for creating some value. The last quarter was decent, with earnings better than expected and sales inline. But, overall, we would still far prefer PFE for safety and a dividend. JNJ also looks better. We just need to see some balance sheet improvements at BHC.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PFE.