Alcon rises as Baird upgrades after Q1 beat
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- Alcon Inc. (NYSE:ALC) added ~4% pre-market Wednesday as Baird upgraded it to Outperform from Neutral and raised its price target to $90 from $75 per share after the contact lens maker topped Street forecasts with its Q1 2023 financials.
- The analyst Jeff Johnson points out that Alcon (ALC) exceeded the firm’s and Street forecasts for adj. gross margin and operating margin while growth in its contact lens business accelerated despite headwinds in the implantable segment.
- The analyst argues that given the potential of surgical and contact lens businesses to remain defensive in the current macro environment, “we see a solid path higher for this stock moving forward.”
- Reasoning for the upgrade, Johnson noted that he is more optimistic about the company’s long-term potential for margin improvement due to its Q1 performance for margins and a sequential improvement in the contact lens business.