Bausch Health Companies Inc. (NYSE:BHC) is one of the 7 best small-cap drug manufacturing stocks to buy according to hedge funds.

On February 25, Glen Santangelo from Barclays reduced the price target on Bausch Health Companies Inc. (NYSE:BHC) from $8 to $7. The analyst reaffirmed an Equal Weight rating on the stock, which yields an adjusted upside potential of almost 37% despite the downward revision.

Evgeny Atamanenko/Shutterstock.com

Santangelo’s revision came after the company’s fourth quarter report. The analyst reiterated his stance on the company experiencing difficulties due to the loss of exclusivity in 2028.

Back on February 19, CEO Thomas Appio reflected on the company’s fourth quarter report, marking yet another period of year-on-year growth in key financial metrics. He attributed such performance to the company’s commercial and operational strength. Shedding light on the potential across the aesthetic treatments market, Appio stated:

“Our newly acquired full-service aesthetics distribution business in China expands our geographical reach, provides direct access to a large customer base, and allows us to better address market demand for aesthetic treatments, strengthening our global aesthetics franchise and our commitment to excellence in China. As we move into 2026, we remain committed to commercial and operational excellence, along with the proactive pursuit of initiatives that expand our portfolio and enhance our long-term outlook.”

Bausch Health Companies Inc. (NYSE:BHC) engages in the development and sale of a range of items for the healthcare industry. The five segments of the company specialise in different areas, which include hepatology, neurology, dermatology, gastroenterology, generic pharmaceuticals, over-the-counter (OTC) items, aesthetic medical devices, and eye health.

While we acknowledge the potential of BHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.