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Monday, Deutsche Bank (ETR:DBKGn) analysts raised the price target on Alcon Inc. (NYSE:ALC:SW) (NYSE: ALC) shares to CHF96.00, up from the previous CHF92.00, while maintaining a Buy rating on the stock. The adjustment follows the company’s Capital Markets Day, where Alcon presented new medium-term guidance that was well received. The company, currently valued at $47.4 billion, is trading near its 52-week high, with InvestingPro data showing analyst price targets ranging from $86 to $120.
Alcon, a company specializing in eye care products, has projected an organic sales growth of 6-8% and an adjusted earnings per share (EPS) growth of 12-15%. These figures suggest that the company expects to continue outperforming the market, which could lead to mid-single-digit upward revisions to consensus earnings estimates. InvestingPro analysis reveals the company’s strong financial health with a "GREAT" overall score, though it currently trades at a relatively high P/E ratio of 46.5.
The optimism from Deutsche Bank is partly due to Alcon’s focus on innovation and new product development. The company has several new product launches lined up in the areas of surgical eye care, contact lenses, and pharmaceutical eye drugs, among others. These launches are anticipated to occur in 2025 and 2026, which could further solidify Alcon’s leading position in the market. The company has demonstrated steady performance with revenue of $9.9 billion and growth of 4.8% over the last twelve months.
Deutsche Bank’s analyst highlighted the potential impact of these innovations, stating, "Alcon’s targeted market outperformance should be supported by innovation, with several new product launches planned in surgical eye care, contact lenses, and pharmaceutical eye drugs, among other areas."
Investors and industry watchers will likely keep an eye on Alcon’s performance as it aims to deliver on its growth projections and bring new products to market in the coming years, potentially reshaping the eye care industry landscape.
In other recent news, Alcon Inc. has been the subject of significant attention from multiple analyst firms following its Capital Markets Day. Mizuho (NYSE:MFG) Securities raised their price target for Alcon to $120, maintaining an Outperform rating, citing the company’s updated five-year plan that surpassed Wall Street expectations. The company forecasts its earnings per share (EPS) to grow at a compound annual rate of 12-15% over the next five years, outpacing market expectations. Similarly, Jefferies increased their price target to $115, maintaining a Buy rating, and emphasized the positive outlook due to upcoming product launches. Needham also raised their price target to $110, reflecting optimism about Alcon’s product pipeline and its potential to drive revenue and earnings growth.
Meanwhile, Stifel reiterated a Buy rating with a $100 target, highlighting Alcon’s potential for sustainable top-line growth and operating margin expansion. Citi maintained a Buy rating with a CHF99.00 target, noting Alcon’s commitment to achieving a mid-20s core EBIT margin despite increased R&D expenses. The company’s long-term growth projections have been well-received, with analysts expressing confidence in Alcon’s strategic direction and market position. These developments collectively suggest a positive outlook for Alcon’s financial performance in the coming years.
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