JPMorgan analyst Chris Schott upgraded Bausch Health Companies to Overweight from Neutral with a price target of $38, up from $32. The shares closed Wednesday up 9c to $29.33. The fundamentals for Bausch "looking increasingly solid" while the shares are trading at only a modest premium relative to the broader Specialty Pharma group, Schott tells investors in a research note. Over the past several quarters, Bausch's business has successfully transitioned away from legacy issues and towards more "normalized" operations, contends the analyst. Further, he believes the company is well positioned for both sales and EBITDA growth in 2020 with loss of exclusivities slowing relative to the past several years. Schott also sees a longer-term path for Bausch to unlock value by separating out its "highly-attractive" eye care business.

Bearish flow noted in Bausch Health with 3,560 puts trading, or 1.6x expected. Most active are Jun-25 7 puts and Jul-24 8 puts, with total volume in those strikes near 2,800 contracts. The Put/Call Ratio is 2.60, while ATM IV is up over 1 point on the day. Earnings are expected on May 2nd.