Needham lifts Alcon target to $98 on strong earnings

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Written By Pinang Driod

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On Wednesday, Needham, a notable investment firm, raised its price target for Alcon Inc. (NYSE:), a leader in eye care products, to $98.00, up from the previous target of $86.00. The firm has reiterated its Buy rating for the company’s stock.

This decision follows Alcon’s recent financial performance, where the company reported fourth-quarter revenue that aligned with market expectations and an earnings per share (EPS) that surpassed consensus estimates.

Alcon’s financial guidance for the year 2024 also appeared to be a contributing factor, as it was reported slightly above market consensus. The firm identified a significant opportunity for Alcon to increase its market share in the accommodating intraocular lens (AT-IOL) market in China.

The potential for growth in this market is substantial, with estimates around $140 million, and Alcon currently has a lower than expected share.

Despite expectations for equipment sales growth to remain flat in 2024, Needham anticipates that new product launches could lead to an acceleration in growth towards the end of the year. These launches are also expected to stimulate growth in the consumables sector.

The firm’s positive outlook is reflected in the revised price target and the reiterated Buy rating, with the analyst stating the potential for upcoming launches to drive acceleration in growth.

Alcon’s position in the market and its financial outlook, including the anticipated influence of new product launches, have been key factors in Needham’s assessment. The firm’s analyst has expressed confidence in Alcon’s ability to penetrate the Chinese AT-IOL market and the impact of new launches on both equipment and consumables growth, leading to the increased price target.

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