Alcon’s Mixed Q4 FY24 Results Lead to Hold Rating Amid Promising Pipeline and Strategic Growth Focus

In a report released today, Julien Ouaddour from Bank of America Securities maintained a Hold rating on Alcon (ALC – Research Report), with a price target of CHF82.00.

Julien Ouaddour’s rating is based on a combination of factors that reflect both the strengths and challenges faced by Alcon. The company’s Q4 FY24 results showed a slight sales increase above consensus, with certain segments like Consumables and Equipment performing well, while Implantables and Ocular Health underperformed. Despite these mixed results, the EBIT and EPS figures were slightly above expectations, indicating some financial stability.
Looking ahead to FY25, Alcon’s sales outlook aligns with investor expectations, although it is slightly below consensus. The anticipated core EBIT margin expansion suggests potential profitability improvements, but higher interest expenses are expected to impact diluted EPS. Additionally, while the company’s product pipeline is promising, the stock’s current valuation appears fair, leading to a Hold rating. The upcoming product launches and strategic focus on growth and profit phasing are key areas of interest for investors, particularly with the upcoming Capital Markets Day.

In another report released on February 13, Kepler Capital also maintained a Hold rating on the stock with a CHF88.00 price target.