Alcon downgraded at J.P. Morgan on Q2 results

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J.P. Morgan downgraded Alcon (NYSE:ALC [https://seekingalpha.com/symbol/ALC]) to Neutral from Overweight on Thursday after the Swiss maker of intraocular lenses reported Q2 2025 results falling short of Street forecasts for revenue despite an earnings beat. [https://seekingalpha.com/news/4487537-alcon-slips-9-top-line-miss-updated-2025-guidance]

Following a mixed quarter, the Geneva-based eye care firm lowered its 2025 net sales outlook to $10.3B - $10.4B, from $10.4B - $10.5B, missing $10.47B in the consensus, but reiterated its core diluted earnings projection for the year at $3.05 - $3.15 per share.

“Another soft quarter combined with another cut to guidance is likely to lead to investors questioning FY26 growth expectations,” J.P. Morgan analyst David Adlington said, slashing his price target on ALC to $77.53 (June 2027) from $105.88 (June 2026) previously.

As reasons for the target cut, the analyst cited lower financial projections and a depressed sector premium, which he has lowered to 25% from 50% due to a slowdown in growth rates.

While Adlington appreciated the company’s new product pipeline, he added that its Q4-weighted growth, slow market expansion, and ongoing overseas share losses for Alcon’s (NYSE:ALC [https://seekingalpha.com/symbol/ALC]) IOL products “are unlikely to be much comfort for investors in the near term.”

“Market growth acceleration and evidence of successful new product launches could see us reverse this cut to the premium—but for the next six months, this seems unlikely,” he concluded.

MORE ON ALCON

* Alcon Inc. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4815470-alcon-inc-2025-q2-results-earnings-call-presentation]
* Alcon Inc. (ALC) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4815469-alcon-inc-alc-q2-2025-earnings-call-transcript]
* Alcon: More Than Meets The Eye [https://seekingalpha.com/article/4815251-alcon-more-than-meets-the-eye]
* Alcon updates 2025 revenue outlook to $10.3B–$10.4B while advancing strategic acquisitions and new product launches [https://seekingalpha.com/news/4487719-alcon-updates-2025-revenue-outlook-to-10_3b-10_4b-while-advancing-strategic-acquisitions-and]
* Alcon slips 9% on top-line miss, updated 2025 guidance [https://seekingalpha.com/news/4487537-alcon-slips-9-top-line-miss-updated-2025-guidance]