Analysts Offer Insights on Healthcare Companies: Agilent (NYSE: A) and Bausch Health Companies Inc (NYSE: BHC)

By Austin Angelo

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Agilent (AResearch Report) and Bausch Health Companies Inc (BHCResearch Report) with bullish sentiments.

Agilent (A)

In a report released today, Jack Meehan from Barclays reiterated a Buy rating on Agilent, with a price target of $83. The company’s shares opened today at $77.67, close to its 52-week high of $78.80.

Meehan wrote:

“We think Agilent delivered a solid FY1Q19 print last night, featuring a modest top line beat which was leveraged into a 6% EPS beat ($0.76 vs. our $0.72 forecast). Consistent trends help improve our conviction in the thesis heading into FY2019. Organic growth of 6% in the quarter came in 1.2% better than our expectations and guidance. Growth was solid, although less broad-based than last quarter – which we view as understandable in the context of tough quarterly comps. Notably, DGG posted 13% organic growth while ACG delivered 10% organic growth. The capital equipment driven LSAG division posted “just” 1% organic growth, but on an 11% quarterly comp. From an end market perspective, we think results hit the mark across customer classes and geographies. Pharma & Sales) posted 10% core growth.”

According to TipRanks.com, Meehan is a 4-star analyst with an average return of 6.6% and a 64.9% success rate. Meehan covers the Healthcare sector, focusing on stocks such as Bio-Rad Laboratories, IQVIA Holdings Inc, and Syneos Health Inc.

Currently, the analyst consensus on Agilent is a Strong Buy with an average price target of $83, implying a 6.9% upside from current levels. In a report issued on February 12, Deutsche Bank also maintained a Buy rating on the stock with a $85 price target.

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Bausch Health Companies Inc (BHC)

In a report released yesterday, Geoff Meacham from Barclays maintained a Buy rating on Bausch Health Companies Inc, with a price target of $31. The company’s shares opened today at $23.90.

Meacham commented:

“We think Bausch delivered a solid 4Q, beating on revenue ($2.12B vs $2.08 consensus) and non-GAAP EPS ($1.03 vs $0.89 consensus) – continuing the progress we’ve seen in recent quarters with strong commercial execution and focus on increasing margins. While 2019 revenue guidance came in below consensus at the midpoint ($8.40B vs $8.48B consensus), management noted the potential for upside, stating its expectation for 2019 revenues above the midpoint, which would reflect growth over 2018 revenue of $8.38B. In our view, management has the right strategy in its plan to prioritize debt reduction while remaining open to opportunistic external growth opportunities. With long-term debt now below $25B, and plans to pay another ~$1B in 2019, Bausch is on increasingly solid financial footing.”

According to TipRanks.com, Meacham is a 4-star analyst with an average return of 4.6% and a 54.1% success rate. Meacham covers the Healthcare sector, focusing on stocks such as DBV Technologies SA – American, Vertex Pharmaceuticals, and Johnson & Johnson.

Currently, the analyst consensus on Bausch Health Companies Inc is a Moderate Buy with an average price target of $33.29, representing a 39.3% upside. In a report issued on February 13, Mizuho Securities also reiterated a Buy rating on the stock with a $39 price target.

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