Bausch + Lomb's (BLCO) Miebo trends indicate it became the largest branded prescription drug for dry eye disease in Q3, but foreign exchange will likely become a modest headwind during the quarter, RBC Capital Markets said in a Thursday research report.

The company is due to report Q3 results on Oct. 28. Xiidra's total prescription declines are moderating, with the improvement in gross-to-net pricing offsetting the volume drag, analysts wrote.

The brokerage said it expects Q3 revenue of $1.38 billion and adjusted earnings before interest, taxes, depreciation, and amortization of $275 million. For the contact lens and consumer segment, it estimates revenue of $285 million and $483 million, respectively.

The firm said focus remains on near-term launches, potential product recalls and impact on 2026 guidance following the Food and Drug Administration's September warning letter to the company's Tampa manufacturing facility, citing Current Good Manufacturing Practice violations in aseptic processing.

The brokerage said it reiterated its outperform rating on the stock and price target of $21 per share.

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