Jefferies raises Alcon stock price target to $115, maintains Buy

Published 28/03/2025, 10:56
Jefferies raises Alcon stock price target to $115, maintains Buy

On Friday, Jefferies analyst Anthony Petrone adjusted the price target for Alcon Inc. (NYSE:ALC) shares, increasing it to $115 from the previous $110, while reaffirming a Buy rating for the company. With a current market capitalization of $47.97 billion and trading near its 52-week high of $101.10, InvestingPro analysis indicates the stock is currently overvalued. The adjustment follows the firm’s attendance at Alcon’s Capital Markets Day, which left analysts feeling more optimistic about the company’s prospects for the second half of 2025 and the full year 2026.

The analyst’s comments reflected a positive outlook based on expected company performance, citing upcoming product launches across various segments as a key driver. With current revenue of $9.91 billion and an overall financial health score rated as GREAT by InvestingPro, Alcon’s reaffirmation of its 2025 guidance, with an anticipated stronger second half that is expected to extend into a robust 2026, contributed to the analyst’s confidence. Long-range projections through 2029 suggest constant currency revenue growth of 6-8% and EPS growth of 12-15%.

In light of these projections and the company’s strategic direction, Jefferies has revised upward their estimates for the coming years. The firm also announced a change in lead coverage for Alcon, transitioning from Mike Sarcone to Young Li. This shift in analyst coverage comes at a time when Alcon is poised for growth, with analyst targets ranging from $86 to $116, and Jefferies’ raised price target reflects their belief in the company’s potential to outperform market expectations. Discover more detailed valuation metrics and 12 additional ProTips with InvestingPro.

In other recent news, Alcon has made significant strides in its business operations and strategic initiatives. The company reported new long-term guidance, projecting a 6-8% net sales currency growth and a 12-15% core diluted EPS currency growth, surpassing consensus estimates. This update was positively received by Citi analysts, who maintained a Buy rating with a CHF99.00 price target, viewing the guidance as a robust outlook for Alcon’s future performance.

Alcon has also acquired a majority stake in Aurion Biotech, aiming to advance the development of Aurion’s cell therapy asset, AURN001, into Phase 3 trials. This acquisition aligns with Alcon’s strategy to address unmet medical needs in eye care, leveraging Aurion’s innovative cell therapy technology. Additionally, Alcon has agreed to acquire LENSAR Inc., a provider of femtosecond laser-assisted cataract surgery equipment, for an upfront cash payment of $14.00 per share, with potential additional payments based on specific milestones.

Bernstein analysts maintained an Outperform rating and a $110.50 price target for Alcon, highlighting the synergy between Alcon’s intraocular lenses and LENSAR’s technology. Meanwhile, Stifel analysts reiterated their Buy rating with a $100.00 price target, emphasizing Alcon’s promising product cycle and defensive market position. They noted the potential impact of upcoming product launches and the company’s Capital Markets Day on its financial performance and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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