Analyst David Saxon of Needham reiterated a Buy rating on Alcon (ALC – Research Report), with a price target of $110.00.
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David Saxon has given his Buy rating due to a combination of factors including Alcon’s ability to maintain solid margins despite broad-based top-line weaknesses. Although the company’s revenue and EPS for the first quarter of 2025 fell short of expectations due to slower growth in the US market, the management’s decision to raise revenue guidance for the year reflects confidence in overcoming currency fluctuations and market challenges.
Furthermore, while there were anticipated weaknesses in the Implantables segment, the overall performance was bolstered by Vision Care’s margin expansion, which partially offset the contraction in core operating margins. Despite these challenges, Alcon’s stable market share in the contact lens sector, as inferred from the performance of its peers, supports a positive outlook. These elements collectively contribute to Saxon’s optimistic assessment and Buy recommendation for Alcon’s stock.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a CHF96.00 price target.
ALC’s price has also changed slightly for the past six months – from $87.490 to $93.250, which is a 6.58% increase.