Alcon: Needham Reiterates Buy Rating, Raises PT to $107

Alcon: Needham Reiterates Buy Rating, Raises PT to $107

Needham & Company LLC has reiterated its "buy" rating on Alcon Inc. (ALC) and raised its price target to $107. The new target represents an increase from the previous $100 target set earlier this year. The move comes amidst a strong consensus among analysts for the company, with a "Moderate Buy" rating from 15 analysts [1].

Alcon's recent performance has been positive, with a fifty-two week performance reflecting a growth trend. The stock's current price of $91.50 reflects a strong market performance. Institutional ownership is significant, indicating confidence from large investors, and the company has shown a month-to-month decrease in shares shorted, suggesting improving investor sentiment [1].

The analysts at Needham cited Alcon's strong market position and the potential for growth from the recent acquisition of STAAR Surgical Company. The acquisition, valued at approximately $1.5 billion, is expected to be accretive to earnings in the second year and will allow Alcon to offer a leading surgical vision correction solution for patients with moderate to high myopia [2].

The consensus price target for Alcon is $106.13, with the highest target at $120.00 and the lowest at $84.00. The average price target represents a forecasted upside of 18.96% from the current price of $89.21 [1].

Despite the positive outlook, analysts also noted some concerns. The average daily volume has decreased, indicating reduced trading interest, and there have been fluctuations in the month-to-month change in shares shorted, signaling uncertainty in the stock's future performance [1].

In summary, Needham's revised "buy" rating and higher price target reflect a positive outlook for Alcon, driven by strong analyst consensus and potential growth opportunities from recent acquisitions. However, investors should be aware of the potential for volatility and reduced trading interest.

References:
[1] https://www.marketbeat.com/stocks/NYSE/ALC/forecast/
[2] https://pulse2.com/alcon-to-buy-staar-surgical-in-1-5-billion-deal/