Bausch + Lomb (BLCO) could report stronger Q2 results as prescription eye drug sales, improving surgical operations and new consumer products support growth, though currency benefits may weaken and policy risks remain, RBC Capital Markets said in a note Monday.

RBC expects Q2 revenue of $1.38 billion, above the $1.37 billion consensus estimate, and raised its Q2 sales forecasts for Miebo and Xiidra to about $95 million each after prescription data came in stronger than expected.

Foreign exchange rates are expected to add about $15 million to Q2 revenue, down from a benefit of about $42 million in Q1, with currencies expected to become a small drag in H2, RBC said.

Full-year revenue is estimated at $5.45 billion, including about $48 million in currency benefits, compared with the company's guidance of $5.42 billion to $5.52 billion, along with a margin of 19.2%, supported by prescription drug growth and improved profitability, according to the note.

RBC kept its outperform rating and $21 price target as a higher valuation for the prescription drug business offset a lower valuation for the vision care and surgical units.

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