ALC - Alcon: Revisiting The Investment Thesis

• Alcon continues to grow at a double-digit rate and is on track to achieve management's full-year guidance.
• Both the Surgical and the Vision Care segments delivered double-digit growth, which highlights a solid demand for the company's products in every category.
• While I believe ALC is a buy-and-hold type of investment, I think valuation is increasingly important in a rising rate environment.
• The stock isn't cheap despite the recent pullback, trading at more than 30x FY22 core diluted EPS, which leaves plenty of room for a move to the downside.
• I have adjusted my valuation to reflect a higher discount rate, which has lowered my intrinsic value estimate from $76 to $59 per share.

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