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Alcon shares see price target boost to $105 by Jefferies

EditorLina Guerrero
Published 05/14/2024, 04:31 PM

On Tuesday, Alcon Inc. (NYSE:ALC) received an updated price target from Jefferies, a financial services company. The new price target is set at $105.00, an increase from the previous $100.00, while the firm maintained a Buy rating on the stock.

Alcon, a company specializing in eye care products, reported first-quarter sales of $2.44 billion, which was just shy of the consensus estimate of $2.46 billion. However, the adjusted earnings per share (EPS) of $0.78 exceeded the consensus estimate of $0.73, driven by strong margin performance.

Despite facing headwinds from foreign exchange rates, Alcon has adjusted its forecast for full-year 2024 sales to the lower end of the $9.9 to $10.1 billion range. Nevertheless, the company has kept its core EPS guidance steady at $3.00 to $3.10, representing a year-over-year constant currency growth of 15-18%, which aligns with the consensus estimate of $3.04.

The company's resilience is notable as it has managed to deliver solid financial results amidst worsening foreign exchange headwinds. Additionally, Alcon's vitreoretinal surgery (VC) margins showed a significant improvement, with a year-over-year increase of 400 basis points.

Following the analysis of Alcon's performance and financials, Jefferies has raised its EPS estimates for the company and reiterated its Buy rating, reflecting a positive outlook on Alcon's stock.

InvestingPro Insights

Following the recent financial update by Alcon Inc. (NYSE:ALC), investors and analysts are keenly observing the company's performance metrics. An InvestingPro analysis highlights several key points that may be of interest to those following the eye care specialist's market activity. Alcon's market capitalization stands at a robust 44.03 billion USD, indicating a significant presence in the industry. Its current P/E ratio is 41.63, which suggests that the stock is trading at a premium relative to its earnings. However, it is important to note that the company's PEG ratio, which measures the price of a stock relative to its earnings growth, is at an attractive 0.22 as of the last twelve months ending Q4 2023. This indicates potential for growth that may not be fully reflected in the current P/E ratio.

InvestingPro Tips also shed light on Alcon's dividend performance and valuation metrics. The company has a commendable track record of raising its dividend for 4 consecutive years, which may appeal to income-focused investors. Additionally, Alcon is trading at a high EBITDA valuation multiple, with a notable 15.03% EBITDA growth in the last twelve months as of Q4 2023. This could be a sign of strong operational efficiency and profitability.

For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available that delve deeper into Alcon's financial health, stock performance, and market valuation. These tips can be accessed through InvestingPro's platform at https://www.investing.com/pro/ALC. Moreover, interested readers can take advantage of a special offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more insights to inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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