On Thursday, BTIG raised the price target for Alcon Inc. (NYSE: NYSE:ALC) to $104 from the previous $98, while reiterating a Buy rating for the company's stock. The adjustment follows a period where Alcon experienced a modest second quarter in 2024, with net sales falling short of expectations by 1.2% and Core EPS slightly surpassing estimates at $0.74 compared to the predicted $0.73. Despite these mixed results and supply issues impacting gross margins, Alcon's stock has seen a slight increase of 1.8% since the second quarter report.
Investor meetings in Chicago with Alcon's VP of Investor Relations, Dan Cravens, and Director of Investor Relations, Allen Trang, revealed insights into the company's market dynamics and product segment drivers. The discussion largely focused on Alcon's revenue generation rather than detailed profit and loss management. The anticipation of a strong product pipeline for 2025 is expected to potentially boost fiscal year 2025 estimates due to new product adoptions.
The series of upcoming product launches, although not all scheduled for the beginning of 2025, are projected to have a lasting impact, supporting Alcon's growth at the higher end of its long-term targets. BTIG's confidence in Alcon's growth prospects and market strategy has led to an increase in the price target, now set at $104.
This new target is based on a 28 times multiple of Alcon's earnings, which is noted to be slightly below the company's historical average valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.