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On Friday, Bernstein analysts showed continued confidence in Alcon Inc. (NYSE:ALC:SW) (NYSE: ALC), as they increased the company’s price target to CHF99.00 from CHF97.50. The firm maintained its Outperform rating on the eye care product maker’s shares, which currently trades near its 52-week low at $84.39. According to InvestingPro data, Alcon boasts a "GREAT" financial health score of 3.22, suggesting strong fundamentals.
The upgrade in the price target follows a recent Capital Markets Day event, which provided a positive outlook on Alcon’s innovation pipeline for the year 2025 and beyond. Bernstein’s analysts were encouraged by the detailed presentation of the company’s upcoming 2025 product suite and the robustness of its future pipeline. With a market capitalization of $41.84 billion and last twelve months revenue of $9.91 billion, Alcon maintains its position as a prominent player in the healthcare equipment sector.
In a statement, Bernstein highlighted the significance of the event, noting that it reinforced their optimism about the company’s potential with the new 2025 products and the strength of its innovation pipeline extending past that year. They emphasized the incremental information shared about the products set to launch in 2025 and shared their perspective on the innovation pipeline’s future.
The decision to raise the price target was influenced by an increased discounted cash flow (DCF) price, with Bernstein adjusting their long-term earnings per share (EPS) estimates upwards. This adjustment was based on Alcon’s new mid-term targets, which include an anticipated 6-8% annual constant currency revenue growth and a compound annual growth rate (CAGR) of 12-15% in EPS through to the year 2029.
In other recent news, Alcon Inc. has been the focus of several analyst updates following its Capital Markets Day. KeyBanc increased its price target for Alcon to $112, maintaining an Overweight rating, citing the company’s strategic balance of innovation and sustained double-digit earnings growth. Deutsche Bank (ETR:DBKGn) also raised its price target to CHF96, highlighting Alcon’s projected organic sales growth of 6-8% and adjusted earnings per share growth of 12-15%. Stifel reiterated a Buy rating with a $100 price target, emphasizing Alcon’s potential for sustainable top-line growth and multiple expansions due to upcoming product cycles.
Needham analysts expressed increased confidence in Alcon, raising their price target to $110 and maintaining a Buy rating, optimistic about the company’s upcoming product launch cycle. Mizuho (NYSE:MFG) Securities took a similar stance, lifting their price target to $120 and maintaining an Outperform rating, following Alcon’s presentation of its five-year long-range plan. The plan included forecasts of top-line growth outpacing market growth rates and a 12-15% compound annual growth rate in earnings per share.
These developments underscore the positive outlook from various analysts, reflecting confidence in Alcon’s strategic initiatives and growth prospects. The company’s focus on innovation and market expansion continues to garner favorable views from the investment community.
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