RBC cuts Alcon stock price target to CHF95, keeps Outperform rating

Published 20/05/2025, 08:28
RBC cuts Alcon stock price target to CHF95, keeps Outperform rating

On Tuesday, RBC Capital Markets adjusted its valuation of Alcon Inc. (ALC:SW) (NYSE:ALC), reducing the price target to CHF95.00 from the previous CHF100.00. Nonetheless, the firm maintained its Outperform rating on the company’s shares. The revision follows an evaluation of Alcon’s first-quarter results and updated guidance.

RBC Capital’s analysts expect that Alcon will face margin pressures through the current year and into 2026. This forecast has led to a downward revision of the company’s fiscal year 2025 earnings per share (EPS) by 4.7%. Despite these challenges, RBC Capital continues to view Alcon as a high-quality business with stable growth potential.

According to the analyst’s statement, the reevaluation of Alcon’s stock is based on a refreshed valuation method. The firm is now applying a 27x price-to-earnings (P/E) ratio to Alcon’s updated 2026 EPS forecast, resulting in the new price target of CHF 95. The analyst emphasized the company’s quality and potential for stable compounding despite the anticipated near-term headwinds.

Alcon Inc. specializes in eye care products and is known for its surgical equipment and vision care products. The company’s performance is closely watched by investors interested in the healthcare sector, particularly those focused on medical technology and supplies.

The revised price target by RBC Capital indicates a level of confidence in Alcon’s long-term prospects, despite the expectation of margin pressures in the short term. Investors in Alcon Inc. will be monitoring the company’s performance against these forecasts in the upcoming quarters.

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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