Needham Initiates Alcon Citing 'Visible Path to Sustainable Double-Digit EPS Growth'

Needham is initiating coverage on Alcon AG ALC with a Buy rating and a $95 price target.

  • The analysts believe Alcon has visibility into sustainable mid-single-digit or better revenue growth driven by key implantable products, contact lenses, and ocular health. 
  • Margin improvements are expected to be driven by manufacturing, product mix, and opex leverage.
  • The analysts estimate Alcon can see above-peer EPS growth through 2024. 
  • Related: Alcon's Q4 Earnings Surpass Expectations, Proposes CHF 0.20/Share Dividend.
  • "We believe recent advanced technology IOL (AT-IOLs) launches could help ALC's Implantables segment grow faster than the market's 6% pace. Analysts write that every ~100 bps increase in AT-IOL market penetration translates into $100 million in revenue (~120 bps to ALC's growth)."
  • Premium contact lens launches are expected to result in mid-to-high single-digit growth. 
  • Needham expects the mid-single-digit or better revenue growth and steady adjusted operating margin improvement in their estimates will support a 13.6% EPS CAGR from 2021 through 2024. 
  • Price Action: ALC shares are down 0.30% at $81.01 during the market session on the last check Friday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: NewsHealth CareInitiationAnalyst RatingsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!