Deutsche Bank upgraded Alcon AG to “buy” from “hold” rating and raised its price target to CHF77 from CHF69, citing expectations of stronger growth and margin expansion.
In a note, analyst Falko Friedrichs said Alcon, described as the global leader in eye care, is expected to see organic sales growth reaccelerate in 2026, driven by a series of new product launches.
He said growth is expected to be particularly strong in the first half of the year due to softer comparables, which he said would make Alcon one of the few cases in the sector where growth is not more heavily weighted toward the later part of the year.
Friedrichs said Deutsche Bank’s modelling assumptions for 2026 and the medium term point to double-digit adjusted EPS growth and are slightly above consensus expectations.
He added that the valuation, based on a blend of discounted cash flow and a 25x target price-to-earnings multiple, implies around 25% upside to the current share price. The multiple is toward the lower end of Alcon’s historical 23x to 30x range.
