This is an interesting article on not buying B&L expecting it to come back quickly from its fungus debacle. Plus they have accounting scandals on top of all this.
This is a big deal for B&L. It generates 23% of its sales from lens-care products, sold under the Bausch & Lomb, Boston, ReNu and Sensitive Eyes names. It launched ReNu with MoistureLoc in 2004. Bank of America analyst David Maris says that brand isn't likely to return to the U.S. market, resulting in the loss of $45 million in potential sales this year.
He figures B&L will lose share of the overall lens care market and that its contact lens sales could be hurt as well. "We think the brand damage on ReNu will be sizable and carry over into the Bausch & Lomb overall brand globally," he says. On Wednesday, Maris lowered his 2006 earnings per share estimate from $4.24 to $3.05. He also lowered his 12-month target price for the stock from $49 to $40 and maintains a "sell" rating.
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