Alcon (ALC) Stock Maintains Buy Rating Despite Price Target Adjustment

UBS has revised its price target for Alcon from CHF 100 to CHF 95, maintaining a Buy rating. Alcon is a prominent healthcare company with a strong presence in the medical devices and instruments industry, specifically in vision care and surgical segments. The company's revenue growth, profitability, and balance sheet strength indicate strong financial health. Despite a modest revenue growth rate, Alcon's operational efficiency and focus on innovation position it well against competitors. The company's valuation metrics suggest potential undervaluation.

UBS has revised its price target for Alcon from CHF 100 to CHF 95, while maintaining a Buy rating. This decision reflects the company's strong financial health and potential for future growth, particularly in its vision care and surgical segments.

Alcon's latest quarterly results, reported on July 2, 2025, showed mixed performance. The company's core earnings per share (EPS) exceeded expectations by 2.7%, driven by a lower tax rate. However, revenues fell short of estimates, with net sales to third parties at $2.58 billion, a 1.29% miss. Despite this, Alcon's operational efficiency and focus on innovation position it well against competitors.

The company's revised full-year guidance indicates a net sales range of $10.3-$10.4 billion, representing year-over-year growth of 4%-5%. This growth, coupled with a promising outlook for 2026, suggests that Alcon is well-positioned for future success. The company's strong balance sheet, with cash and cash equivalents of $1.41 billion, further supports its financial health.

UBS's decision to maintain a Buy rating despite the revised price target underscores its confidence in Alcon's long-term prospects. The company's recent product launches, such as Unity VCS and Voyager DSLT, have shown early signs of success and could drive top-line growth in the second half of 2025. Additionally, Alcon's strategic acquisitions, including STAAR Surgical and LumiThera, position it to expand its market presence and generate long-term value for shareholders.

In conclusion, UBS's revised price target and maintained Buy rating reflect Alcon's strong financial health and promising future growth prospects. The company's operational efficiency, focus on innovation, and strategic acquisitions make it an attractive investment opportunity in the healthcare sector.

References:
[1] https://www.tipranks.com/news/ratings/alcons-strong-eps-performance-and-promising-outlook-justify-buy-rating-despite-revenue-and-ebit-challenges-ratings
[2] https://finance.yahoo.com/news/alcons-q2-earnings-beat-estimates-141200952.html
[3] https://www.theglobeandmail.com/investing/markets/stocks/ALC/pressreleases/34346023/mizuho-securities-remains-a-buy-on-alcon-alc/
[4] https://www.ainvest.com/news/alcon-q2-2025-earnings-call-transcript-analysis-2508/