Stifel maintains Alcon stock Buy rating with $100 target

On Tuesday, Stifel analysts maintained their Buy rating and $100.00 price target for Alcon Inc. (NYSE: NYSE:ALC), a leader in eye care products. The firm’s analysts highlighted the company’s promising product cycle, particularly noting the upcoming releases of UNITY and PanOptix Pro in the second quarter of 2025. They believe these launches will bolster Alcon’s growth and value proposition. According to InvestingPro data, Alcon currently trades at $92.35, slightly above its Fair Value, with a strong "GREAT" financial health rating and broad analyst support (consensus: 1.54 Buy).

The analysts emphasized Alcon’s defensive market position, which is characterized by minimal exposure to consumer spending fluctuations, tariffs, and GLP-1 risks. This strength, according to Stifel, has rightfully earned Alcon a reputation as a "flight-to-quality" name, especially during times of increased market uncertainty. InvestingPro data supports this view, showing a low beta of 0.83 and strong liquidity with current ratio of 2.77. Consequently, they recommend Alcon as a core long-term holding in investment portfolios.

Despite their positive outlook, Stifel analysts expressed some reservations about the immediate potential for significant upside to Alcon’s second-half weighted guidance for 2025. The guidance is heavily dependent on new product performance, which introduces an element of uncertainty. Recent data from InvestingPro shows moderate revenue growth of 4.82% over the last twelve months, with 6 analysts recently revising their earnings expectations downward for the upcoming period.

The upcoming Capital Markets Day (CMD) was identified as a potential deep-dive opportunity into Alcon’s key growth and value drivers. However, Stifel analysts are uncertain about the immediate impact of the CMD on Alcon’s stock price. They are looking for signals of management’s confidence, such as a high single-digit percentage implied compound annual growth rate (CAGR) for 2025-2029, which could indicate a robust product cycle. The analysts suggested that a CAGR closer to 6%, equating to approximately $13 billion in sales by 2029, seems more likely as a base case scenario. For deeper insights into Alcon’s valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through the company’s detailed Pro Research Report, available exclusively on InvestingPro.

In other recent news, Alcon Inc. has been the focus of several analyst updates and strategic developments. BofA Securities upgraded Alcon’s stock rating from Neutral to Buy, with a new price target of CHF96. The firm anticipates a 9% increase in constant currency sales and a 2.5 percentage point margin improvement by the fourth quarter of 2025. Needham maintained its Buy rating with a $107 target, emphasizing the importance of the upcoming Capital Markets Day for insights into Alcon’s strategic direction and product pipeline. Bernstein SocGen Group reinstated coverage with an Outperform rating, setting a price target of CHF97.50, highlighting Alcon’s substantial investment in research and development as a competitive advantage.

Bernstein also set a separate Outperform rating with a price target of $110.50, pointing to Alcon’s strong position in the surgical ophthalmology and contact lens markets. Deutsche Bank (ETR:DBKGn) raised its price target to CHF92 from CHF82, maintaining a Buy rating based on Alcon’s optimistic 2025 guidance, which includes 6-8% organic growth and 8-11% EPS growth. The firm also noted the strength of Alcon’s balance sheet and the potential impact of the upcoming Capital Markets Day. These developments underscore the analysts’ positive outlook on Alcon’s growth trajectory and strategic initiatives.

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