Bernstein starts Alcon with 'outperform', Carl Zeiss with 'underperform'

Carl Zeiss Meditec AG

23/01/2024 09:12

** Bernstein starts coverage of European ophthalmology
sector with an "outperform" rating on Swiss eye-care company
Alcon  ALCC.S  and an "underperform" on German medical
technology firm Carl Zeiss Meditec  AFXG.DE 
    ** The broker sees innovation as key to success in the
"attractive" $34 billion market
        ** Innovative products not only drive higher penetration
but also drive market share gains, it says
  
    ** "Zeiss leads the digital market today, but we see Alcon
as the biggest beneficiary of the industry transition" -
Bernstein
    ** Bernstein says Alcon is the dominant player in the $13
billion surgical market and is set to benefit from its leading
position and strong innovation in markets with high unmet need
and low penetration
    ** Carl Zeiss, on the other hand, is a leader in innovation,
especially in equipment, but has a "challenging" road ahead as
it makes "heavy" investments in R&D and enters the U.S. market,
the broker says
    ** It also notes that the company faces large short-term
headwinds in China from intraocular lens volume based
procurement and refractive consumable destocking, which accounts
for 24% of sales
    ** The broker sets its PT on Alcon at 82 Swiss francs and on
Carl Zeiss at 76 euros

 (Reporting by Mateusz Dobrzyniewski)
 ((Mateusz.dobrzyniewski@thomsonreuters.com))