Alcon’s Strong Q4 Performance and Growth Prospects Justify Buy Rating

In a report released yesterday, Larry Biegelsen from Wells Fargo maintained a Buy rating on Alcon (ALC – Research Report), with a price target of $105.00.

Larry Biegelsen has given his Buy rating due to a combination of factors including Alcon’s strong performance in the fourth quarter, where the company exceeded expectations in both sales and earnings per share. The outperformance was primarily driven by robust sales in the Contact Lens and Consumables segments, which saw significant growth. Additionally, Alcon’s gross margin and core operating margin were slightly above estimates, indicating efficient cost management.
Despite the lower-than-expected EPS guidance for 2025 due to higher non-operating expenses, the company’s revenue and operating margin projections remain solid. The guidance suggests a continued growth trajectory, with sales expected to increase by 6-8% year-over-year. The positive outlook for the contact lens market, where Alcon has shown strong performance, further supports the Buy rating as it indicates potential for future growth.

In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $106.00 price target.