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Stifel, a financial services company, raised its price target on shares of Alcon Inc. (NYSE:) to $95.00 on Wednesday, from the previous target of $85.00, while maintaining a Buy rating on the title. The adjustment follows Alcon’s recent earnings report and the company’s guidance for next year.
Alcon’s market performance was particularly strong on Wednesday, exceeding expectations. Despite mixed results in the fourth quarter of 2023 and earnings per share (EPS) forecasts weighted towards the second half of the year, the company’s outlook for 2024 has been well received.
The guidance suggests a more positive outcome than investors initially feared, which appears to have alleviated any potential concerns.
The company’s management expressed confidence in revenue projections, especially in the implantable segment. While operating margin (OpM) expectations point to significant improvement in the second half of 2024, the first half projection of a 100 basis point decline year-on-year is considered potentially conservative.
Looking further ahead, Stifel’s outlook for Alcon is optimistic, particularly for 2025 and 2026. The company expects further contributions from the value-based purchasing program of intraocular lenses in China in 2025, the introduction of Unity VCS/ DX in late 2024 and the expected launch of AR-15512 in the United States by mid-2025.
These factors contribute to a positive multi-year outlook for Alcon, which Stifel considers a core stock.
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