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On Friday, Bernstein SocGen Group resumed its coverage of Alcon Inc. (NYSE: NYSE:ALC), a leading company in the eye care industry, with an Outperform rating and a new price target of $110.50. According to InvestingPro data, analyst targets range from $80 to $116, with the stock currently trading at $86.81. The company’s market capitalization stands at $43.2 billion, reflecting its position as a prominent player in the Healthcare Equipment & Supplies industry. The firm’s analysis highlights Alcon’s significant role in the surgical ophthalmology market, valued at $13 billion, and its strong position as the second-largest company in the $11 billion contact lens market.
The analyst at Bernstein SocGen Group, Susannah Ludwig, emphasized Alcon’s competitive edge due to its substantial investment in research and development (R&D), which is crucial for innovation, market penetration, and gaining market share. Alcon’s dedication to R&D allows it to outpace its competitors in terms of innovation.
Since separating from Novartis (SIX:NOVN) in 2019, Alcon has increased the rate at which it introduces new products. The company is preparing to launch seven new offerings in the United States in 2025. These products include a new phacoemulsification machine, which is essential for the 30 million cataract surgeries conducted annually, and a next-generation PanOptix advanced technology intraocular lens (AT-IOL). The AT-IOL is designed to mitigate visual disturbances that sometimes deter surgeons from recommending the procedure.
The forthcoming product launches are expected to bolster Alcon’s market presence in both its surgical and vision care segments. The company’s focus on innovation and its aggressive product launch strategy are positioned to further enhance its market share and reinforce its dominance in the ophthalmology sector. With revenue growth of 4.82% in the last twelve months and analysts forecasting 5% growth for FY2025, Alcon continues to demonstrate strong market momentum. InvestingPro subscribers can access over 10 additional exclusive ProTips and detailed financial metrics to make more informed investment decisions.
In other recent news, Alcon Inc. has been the subject of several analyst evaluations following its earnings and revenue announcements. Mizuho (NYSE:MFG) Securities raised its price target for Alcon to $115, citing robust growth in the company’s Contact Lens division, which reported an 11% growth rate on a constant currency basis for the fourth quarter of 2024. Deutsche Bank (ETR:DBKGn) also adjusted its price target upward to CHF92, emphasizing Alcon’s strong balance sheet and the expectation of double-digit earnings growth over the medium term. Meanwhile, Needham and KeyBanc have slightly lowered their price targets to $106 and $105, respectively, due to foreign exchange fluctuations and potential earnings pressure from the current dollar value.
Despite these adjustments, both firms maintain a positive outlook, with Needham retaining a Buy rating and KeyBanc an Overweight rating. Stifel has kept a Buy rating with a $100 price target, noting excitement for Alcon’s newly launched Voyager DSLT glaucoma device, although adoption may be slower than anticipated. Alcon’s future growth is also supported by upcoming product launches, including UNITY, PanOptix Pro, and AR-15512, which are expected to drive further market share gains. Analysts are looking forward to Alcon’s Capital Markets Day, where additional long-term growth and margin projections may be revealed. These developments underscore a period of strategic investment and product innovation for Alcon, positioning it for potential continued success in the medical technology sector.
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