Alcon a buy at Mizuho on 'eyecare dominance'

Matteo Colombo

• Mizuho has initiated Alcon (NYSE:ALC) with a buy saying that eyecare company is a recession hedge as the company is the No. 2 player in the global contact lenses market and No. 1 in cataract implants.
• The firm has a $85 price target (~24% upside based on Wednesday's close).
• Analyst Anthony Petrone said the contact lenses and cataract implants markets have been somewhat counter-cyclical in prior economic downturns.
• He added that Rhopressa and Rocklatan, two key assets from Alcon's (ALC) acquisition of Aerie, is seeing strong weekly prescription growth.
• Petrone noted that Alcon (ALC) should see $100M in savings from a restructuring program begun this year.
• Read why Seeking Alpha contributor Mike Zaccardi considers Alcon (ALC) a buy.