On Friday, CFRA maintained a Buy rating on Alcon Inc. (NYSE:ALC:SW) (NYSE: ALC) and increased the price target to CHF87.00, up from the previous CHF82.00. The adjustment reflects an expected price-to-earnings ratio of 32 times for the year 2024, aligning with the company's historical average.
The firm's positive outlook on Alcon is based on its leading position in the eye care market, which is anticipated to benefit from an aging global population with a growing demand for quality eye care. Alcon's key growth drivers are expected to be its advanced technology intraocular lenses, DAILIES TOTAL1 contact lenses, and Systane Complete for dry eyes.
CFRA forecasts a sales growth for Alcon of approximately 5%-6% in both 2024 and 2025. Additionally, the firm predicts an improvement in Alcon's core operating margin, estimating an increase to between 20.5%-22.0% from 19.7% in 2023.
The analyst's estimates for Alcon's earnings per share (EPS) remain at USD3.00 for 2024 and USD3.40 for 2025, which are at the lower end of Alcon's own guidance range for 2024. This conservative stance on the company's performance metrics underpins the firm's maintained Buy rating and revised price target.
InvestingPro Insights
Alcon Inc. (NYSE: ALC) continues to garner attention with its strong foothold in the eye care industry. According to InvestingPro data, Alcon boasts a market capitalization of $41.63 billion and an adjusted P/E ratio for the last twelve months as of Q4 2023 of 42.7. The company's revenue growth has been steady, with an 8.47% increase over the last twelve months, underlining its consistent market performance.
InvestingPro Tips highlight that Alcon has raised its dividend for three consecutive years and is trading at a low price-to-earnings (P/E) ratio relative to near-term earnings growth, suggesting potential value for investors. Additionally, Alcon's stock generally trades with low price volatility, which might appeal to investors seeking stability. For those interested in exploring further insights, there are additional InvestingPro Tips available that could provide a deeper understanding of Alcon's market position and financial health.
For investors looking to make informed decisions, InvestingPro offers a comprehensive analysis with a total of 13 InvestingPro Tips for Alcon. To access these insights and to help refine your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.