Alcon Inc

ALC: XSWX (CHE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CHF 25.00	Sqxfdd	Wxwvzcjf

Alcon Earnings: Solid Demand, Market Outperformance, and New Launches All Look Promising

Keonhee Kim

Aug 21, 2024

Narrow-moat Alcon reported solid second-quarter earnings. Total sales of $2.5 billion were up 3.1%, or 6% constant currency, year over year driven by strong implantables and contact lenses performance. Despite a number of peers delivering disappointing results during the quarter partly due to a challenged macro environment and a soft consumer outlook, we attribute Alcon’s ability to reap volume wins and drive growth to its strong intangibles. We raise our fair value estimate to $75 (CHF 64) per share from $70 (CHF 62) driven by the time value of money and a slightly ticked-up 2025 expectation.

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