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On Wednesday, prominent investment firm Needham raised its price target for eye care products giant Alcon (NYSE:) to $98.00 from its previous price target of $86.00. The company reiterated its “buy” rating on the company's stock.
This decision follows Alcon's recent financial performance, in which the company reported fourth-quarter revenue in line with market expectations and earnings per share (EPS) that exceeded consensus expectations.
Alcon's reported 2024 financial outlook, which was slightly above market consensus, also appears to have been a contributing factor. The company has identified a significant opportunity for Alcon to increase its market share in the Chinese accommodative intraocular lens (AT-IOL) market.
The growth potential for this market is significant, estimated at approximately $140 million, but Alcon's current share is lower than expected.
Despite forecasting equipment sales growth to remain flat in 2024, Needham expects new product launches could accelerate growth towards the end of the year. These launches are also expected to stimulate growth in the consumables segment.
The company's positive outlook is reflected in a revised price target and repeated buy ratings, and analysts say upcoming new products could accelerate growth.
Alcon's market position and financial outlook, including the expected impact of new product launches, are key factors in Needham's evaluation. The company's analysts expressed confidence in Alcon's ability to enter the Chinese AT-IOL market and the impact new product launches will have on both device and consumables growth, leading to an increase in the target price. ing.
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