Bosch Health Companies (New York Stock Exchange: BHC) has dropped plans to list aesthetic medical device unit Solta Medical through a U.S. initial public offering. The reason for the withdrawal of the IPO plan is not clear, but it may be due to the difficult macroeconomic environment and the company’s significant decline in valuation.
Based in Canada, Bausch Health is a multinational specialty pharmaceutical company with branded generic medicines primarily for dermatology, gastrointestinal disorders, eye health and neurology.
The IPO filing was filed in February and is expected to raise about $100 million. Had the IPO been successful, it would have been the company’s second spinoff this year. In May, Bosch Health listed its eye health business with $630 million in revenue.
In its latest earnings report, Bausch Health lowered its 2022 earnings outlook from the previous range of $8.05 billion to $8.22 billion to $8.0 billion and $8.17 billion. The company expects its results to be impacted by foreign exchange headwinds.
Stocks are down more than 75% this year, so the stock looks cheap today. BHC is trading at his P/E ratio of 9.9x, reflecting a significant discount compared to the sector’s average multiple of 25.1x. So now is a great time to buy stocks.
Overall, the stock has consensus ratings of 1 buy, 5 holds, and 1 sell based hold. BHC’s average price target of $8.60 suggests a potential upside of 27.41% from current levels.