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Investing.com - Bernstein SocGen Group lowered its price target on Alcon Inc. (NYSE:ALC) to $104.65 from $109.00 on Thursday, while maintaining an Outperform rating on the eye care company’s stock. The stock, currently trading at $79.34, appears undervalued according to InvestingPro analysis.
The price target reduction follows what Bernstein SocGen described as a disappointing second quarter that represented a "lower trough than expected" for the company. The firm noted that many investors were disappointed by another earnings miss and guidance downgrade. InvestingPro data shows that 5 analysts have recently revised their earnings expectations downward, though the company maintains a GOOD overall financial health score.
Bernstein SocGen questioned why Alcon hadn’t "simply taken a larger cut at Q1" but emphasized that Q2 was always anticipated to be the trough quarter for the company. The firm indicated that despite more conservative commentary from Alcon, product launches still appear on track to accelerate growth.
The research firm forecasts constant currency revenue growth of 6% in the second half of 2025 and 8% in 2026, viewing yesterday’s share price decline as a buying opportunity for investors.
Bernstein SocGen identified the third-quarter results, scheduled for release on November 12, as the likely next catalyst for the stock, noting that "for the stock to work, the company needs to start to deliver on the acceleration."
In other recent news, Alcon Inc. has faced multiple analyst revisions following its latest financial performance and guidance updates. The company recently reported a quarter that did not meet expectations, prompting a downgrade from JPMorgan from Overweight to Neutral. This was accompanied by a significant reduction in their price target to CHF62.80. Alcon also issued a profit warning, leading BofA Securities to lower its price target to $100, though it maintained a Buy rating. Wells Fargo (NYSE:WFC) adjusted its price target to $88, reflecting Alcon’s revised fiscal year 2025 revenue guidance of $10.3-$10.4 billion, which translates to a 4-5% growth rate excluding foreign exchange effects.
Mizuho (NYSE:MFG) also lowered its price target to $110, citing slower growth in the eye-care market, particularly affecting Alcon’s Surgical segment. Stifel followed suit, reducing its price target to $90 after Alcon’s second-quarter results missed top-line expectations and management cut its sales growth guidance for 2025. Despite these adjustments, Stifel maintained its Buy rating on the stock. These developments highlight the challenges Alcon is facing in maintaining its growth trajectory amid competitive pressures and market softness.
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