Alcon (ALC – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Julien Ouaddour from Bank of America Securities upgraded the rating on the stock to a Buy and gave it a CHF96.00 price target.
Julien Ouaddour has given his Buy rating due to a combination of factors that suggest a positive outlook for Alcon. The company is poised for an earnings upgrade cycle, driven by new product launches that are expected to accelerate earnings momentum in 2025, leading to a strong exit rate for the fiscal year 2026. This optimism is supported by recent management guidance and rebased expectations, which have aligned investor expectations with a more realistic timeline for growth.
Additionally, Alcon’s valuation appears attractive, as its shares trade below their long-term average, providing an upside potential of approximately 17%. The anticipated revenue growth is primarily driven by upgrades in the Equipment and Consumables segment, particularly the UNITY VCS/CS upgrades, and the introduction of Precision7 lenses. Despite competitive pressures in the IOL market, Alcon’s strategic positioning and market dynamics suggest limited downside risk, with potential for continued growth in the Implantables segment. These factors collectively underpin Ouaddour’s Buy rating for Alcon.
In another report released on March 20, Needham also maintained a Buy rating on the stock with a $107.00 price target.