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Investing.com - JPMorgan downgraded Alcon Inc. (NYSE:ALC) (ALC:SW), a prominent $40.3 billion healthcare equipment company, from Overweight to Neutral on Thursday, while significantly reducing its price target to CHF62.80 from CHF94.70. The stock, currently trading at $81.04, is near its 52-week low of $80.48.
The downgrade follows what JPMorgan described as "another soft quarter" for the eye care company, combined with a reduction in guidance that may lead investors to question Alcon’s fiscal year 2026 growth expectations. According to InvestingPro data, five analysts have recently revised their earnings estimates downward, with price targets ranging from $80 to $123.
JPMorgan noted that while management attempted to reassure investors that new product launches are progressing on track, the lack of supporting data points weakened this message, though such evidence may emerge in coming quarters.
The investment bank identified several near-term challenges for Alcon, including growth heavily weighted toward Q4, slow market growth, and ongoing intraocular lens (IOL) share losses outside the United States.
Despite these concerns, JPMorgan acknowledged that Alcon maintains "the best pipeline of new products in Global Medtech over the next 1-2 years," but cautioned that consensus expectations of approximately 17% EPS growth for FY26 appear high given that FY25 EPS guidance has been supported by a one-off low tax rate and foreign exchange factors. The stock currently trades at a P/E ratio of 36, reflecting these growth expectations.
In other recent news, Alcon Inc. has been the subject of several analyst adjustments following its latest financial disclosures. The company recently issued a profit warning, leading BofA Securities to lower its price target to $100, maintaining a Buy rating. Wells Fargo (NYSE:WFC) also reduced its price target to $88, citing Alcon’s revised fiscal year 2025 revenue guidance, which now forecasts 4-5% growth, down from the previous 6-7% estimate. Mizuho (NYSE:MFG) adjusted its price target to $110, maintaining an Outperform rating, due to slower growth in the eye-care market impacting Alcon’s Surgical segment.
Stifel lowered its price target to $90 after Alcon’s second-quarter 2025 results fell short of expectations, with a notable miss in operating margin and a reduction in sales growth guidance. Bernstein SocGen also decreased its price target to CHF84.50, reflecting disappointment over Alcon’s repeated guidance downgrades. These developments highlight ongoing challenges in Alcon’s market environment and strategic adjustments by analysts in response to the company’s financial outlook.
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