Alcon (ALC) received its lone sell-equivalent rating on Wall Street as Bank of America downgraded the Swiss eye care company to Underperform from Buy on Thursday, arguing that consensus estimates are overly optimistic and the company’s facing earnings downside risk.
Analyst Julien Ouaddour noted that amid worsening investor sentiment, Geneva-based Alcon (ALC) has lost ~15% in 2026, a year characterized by a market slowdown, rivalry, and guidance cuts.
While investors expect a rebound and market share gains into next year, Ouaddour argues that there is not enough room for “positive surprises” amid slower adoption of the Unity systems, Alcon's surgical platforms for cataract and vitreoretinal procedures.
According to the analyst, the company has lowered its projection for annual installations of Unity systems to roughly 2,400 and 3,000 for 2026 and 2027, respectively, compared to 3,000 and 4,000 previously.
“The Street assumes a sharp rebound, share gains, and an ambitious Unity ramp-up despite low visibility, leaving little room for positive surprises,” he wrote, cutting ALC’s price target to CHF60 ($75) from CHF80 ($100).
“While investor conversations point to improving confidence into 2026 – on hopes of market recovery and earnings acceleration—we believe consensus expectations are too optimistic,” Ouaddour wrote.
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