HSBC and BofA have differing views on Alcon ahead of product launches

Carl Zeiss Meditec AG

25/03/2025 14:09

** BofA Securities is optimistic about Swiss eye care group Alcon's ALCC.S upcoming product launches, while HSBC cautions of possible margin effects from higher equipment mix

** BofA upgrades Alcon to "buy" from "neutral", expecting the launches to drive earnings growth

** HSBC downgrades both Alcon ALCC.S to "hold" from "buy" and German optical system manufacturer Carl Zeiss Meditec AFXG.DE to "reduce" from "buy"

** It says the stocks' strong YTD performances have been driven by high hopes linked to product launches in the Chinese and American markets

** However, it warns of margin dilution arising from higher equipment mix and points to "rising competition on both intraocular and contact lenses", along with lethargy in the U.S. surgical market

** Alcon's shares are up 6.3% YTD while those of Carl Zeiss have soared 51%

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))