Alcon’s Strategic Initiatives and Valuation Justify Buy Rating with $99 Price Target

BTIG analyst Ryan Zimmerman has reiterated their bullish stance on ALC stock, giving a Buy rating on May 22.

Ryan Zimmerman has given his Buy rating due to a combination of factors related to Alcon’s strategic initiatives and financial outlook. The introduction of the Unity DX system, a next-generation diagnostic tool, is a significant factor. This system is expected to enhance operational efficiency by reducing equipment footprint and preoperative time, which could drive adoption of advanced intraocular lenses (AT-IOLs) and improve patient outcomes.
Furthermore, the valuation of Alcon’s stock supports the Buy rating. The price target of $99 is based on a multiple of 26.5 times the estimated earnings per share for the next 12 to 24 months, which is a discount compared to Alcon’s historical valuation. This valuation reflects confidence in Alcon’s growth prospects, driven by top-line growth and expanding operating margins, which are expected to sustain its premium valuation relative to peers.

Zimmerman covers the Healthcare sector, focusing on stocks such as Xtant Medical Holdings, GE Healthcare Technologies Inc, and Zimmer Biomet Holdings. According to TipRanks, Zimmerman has an average return of -3.0% and a 40.70% success rate on recommended stocks.

In another report released on May 22, Kepler Capital also upgraded the stock to a Buy with a CHF86.00 price target.