ALC Should I Buy
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Alcon AG (ALC) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has a solid position in the eye care market and hedge funds are buying, the technical indicators are bearish, financial performance shows declining net income and EPS, and analysts have mixed views with some downgrades. Additionally, options data indicates bearish sentiment with a high Open Interest Put-Call Ratio of 1.95. For now, holding the stock or waiting for clearer positive catalysts would be a better approach.
The technical indicators for ALC are bearish. The MACD is below 0 and negatively expanding, RSI is neutral at 42.722, and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot level of 79.32, with key support at 77.418 and resistance at 81.223.
Hedge funds are significantly increasing their positions in ALC, with a 470.50% increase in buying over the last quarter. Deutsche Bank upgraded the stock, citing strong organic sales growth potential and margin expansion in 2026.
Analysts have mixed views, with some downgrades and lowered price targets. Options data suggests bearish sentiment with a high Open Interest Put-Call Ratio of 1.
The stock is trading at a 25% premium, limiting upside potential.
In Q3 2025, revenue increased by 6.52% YoY to $2.614 billion. However, net income dropped by 9.89% YoY to $237 million, and EPS fell by 9.43% YoY to $0.48. Gross margin slightly decreased to 55.74%.
Analyst ratings are mixed. Deutsche Bank upgraded the stock to Buy with a CHF 77 price target, while Berenberg lowered its price target to CHF 85. Stifel downgraded the stock to Hold, and BofA double downgraded it to Underperform with a price target of $75. Analysts are cautious about the company's growth outlook and premium valuation.
