Alcon Inc. : The trend should regain control
Entry price | Target | Stop-loss | Potential |
---|
CHF 69.64 |
CHF 80.8 |
CHF 59 |
+16.03% |
---|
The underlying tendency is to the upside for shares in Alcon Inc. and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Strengths● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● With an expected P/E ratio at 53.42 and 39.79 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company's enterprise value to sales, at 4.15 times its current sales, is high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The company is not the most generous with respect to shareholders' compensation.
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