Stifel reiterates Buy rating on Alcon stock amid IOL market dynamics

Published 03/07/2025, 13:08
Stifel reiterates Buy rating on Alcon stock amid IOL market dynamics

Investing.com - Stifel has reiterated its Buy rating on Alcon Inc. (NYSE:ALC), a $44.4 billion eye care company currently trading near its 52-week low. According to InvestingPro analysis, Alcon maintains a GREAT financial health score, with the company showing strong profitability and a robust gross margin of 56%.

The firm’s analysis points to potential stabilization in Alcon’s U.S. IOL business toward the end of 2025 and into 2026, primarily driven by the anticipated ramp-up of the company’s PanOptix Pro product line.

Stifel notes that while the U.S. market may improve, Alcon’s international IOL business could face challenges in 2026 due to intensifying competition in overseas markets.

The international IOL segment has been a crucial growth driver for Alcon’s Implantables division recently, helping to offset softness in the U.S. market.

Alcon’s Implantables segment, which includes its IOL products, represents a significant portion of the company’s overall business portfolio in the global eye care market.

In other recent news, Alcon Inc. has received approval for its Clareon PanOptix Pro intraocular lens in Canada, featuring technology that reduces light scatter for cataract patients. This new lens will be available in early 2026 and aims to enhance visual outcomes with improved light utilization and image contrast. Meanwhile, Stifel analysts have maintained a Buy rating for Alcon, citing the importance of revenue growth from new product cycles despite some growth concerns. They have highlighted the need for core sales growth to meet future guidance targets. BofA Securities also reiterated a Buy rating on Alcon, although they lowered their price target following challenging first-quarter results. The analysts emphasized the company’s structural growth potential and upcoming product launches. Furthermore, Citi analysts have reaffirmed a Buy rating for Alcon after the FDA’s approval of TRYPTYR, a treatment for dry eye disease, projecting significant potential sales impact. BTIG analysts echoed this sentiment, maintaining a Buy rating and noting the strategic importance of TRYPTYR’s launch in the U.S. market later this year.

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