On Friday, Needham analysts adjusted their outlook on Alcon Inc. (NYSE: NYSE:ALC), reducing the price target to $106.00 from the previous $108.00, while still recommending a Buy rating for the stock. Currently trading at $89.11, Alcon maintains strong analyst support, with InvestingPro data showing a consensus Strong Buy rating and price targets ranging from $75 to $116. The revision follows recent comments from Alcon's management regarding the impact of currency fluctuations on future earnings.
During a recent conference, Alcon's management highlighted the potential effects of the current dollar value on earnings, stating, "If the dollar stays where it is today, that would drive probably $0.15 of EPS pressure in next year's number." In response to these insights, Needham analysts have updated their financial model for Alcon, a $43.87 billion market cap healthcare equipment leader with $9.76 billion in trailing twelve-month revenue.
The firm has decreased its revenue forecasts for Alcon, bringing down the 2024 projection to $9.80 billion from $9.81 billion, and the 2025 estimate to $10.25 billion from $10.46 billion. Additionally, earnings per share (EPS) expectations have been adjusted, with the 2024 EPS now set at $3.00, down from $3.02, and the 2025 EPS at $3.16, a decrease from the previously predicted $3.31.
The reduced price target of $106 is a direct consequence of the lowered revenue and EPS estimates. Despite these adjustments, Needham's analysts continue to see the potential in Alcon's stock, as reflected in the maintained Buy rating.
In other recent news, Alcon Inc. has seen significant developments in its financial performance and market position. The company's third quarter sales in 2024 saw a year-over-year increase of 6%, reaching $2.4 billion. The growth is further highlighted by a 25% escalation in core diluted earnings per share to $0.81 and an improved core operating margin of 20.6%. Alcon also generated a record $1.3 billion in free cash flow during the first nine months of 2024 and updated its full-year revenue guidance to $9.8 billion to $9.9 billion.
Several investment firms have also updated their outlook on Alcon. KeyBanc maintained an Overweight rating on Alcon's stock and set a price target of $105. The firm expressed confidence in Alcon's ability to meet its 2027 financial goals. Redburn-Atlantic upgraded Alcon from Neutral to Buy, citing the company's sustained investment in research and development. Needham raised Alcon's price target from $103.00 to $108.00, maintaining a Buy rating and selecting Alcon as its top pick for 2025.
In terms of corporate developments, Alcon has entered into a strategic partnership with OcuMension Therapeutics in China. The company is also planning significant capital expenditures for annual maintenance. These recent developments underline Alcon's ongoing efforts to innovate and grow in the competitive landscape of the eye care industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.