BofA Securities downgraded Alcon Inc. (NYSE:ALC) to Underperform from Buy and reduced its price target to $75 from $100, citing a dimmer outlook following a year marked by market softness, heightened competition and multiple cuts to guidance that have weighed on sentiment.

The analyst noted that while some investors expected improving confidence into 2026, consensus forecasts appeared overly optimistic, assuming a sharp rebound, market share gains and an aggressive ramp in Unity despite limited visibility. BofA's own fiscal 2026 and 2027 EPS estimates sat 4% and 7% below consensus, respectively, and the firm warned of margin downside as well.

Even after a 20% valuation pullback from 2024 highs, Alcon's roughly 25x forward P/E remained elevated relative to its sub-10% expected EPS CAGR from 2025 to 2027. The firm cut fiscal 2026 EPS by 8% and lowered its valuation multiples based on higher WACC assumptions and headwinds from market conditions.