Alcon (ALC) - Get Alcon, Inc. Report exceeded analysts' expectations on its first day of trading Tuesday after the global eye care leader was spun off from parent company Novartis (NVS) - Get Novartis AG Sponsored ADR Report .
American depositary receipts of Alcon opened at $57.81, giving the company a market value of about $28 billion.
The stock began trading on the SIX Swiss Exchange at a roughly equivalent level earlier Tuesday, according to Barron's. The spinoff was the biggest Swiss stock-market transaction in almost a decade.
Wells Fargo analyst Larry Biegelsen started coverage of Alcon with an outperform rating and $66 price target.
Biegelsen said he expects shares of the "powerhouse" to trade at a "premium to Alcon's large-cap medtech peers based on its leadership position in the $23B
ophthalmology device market and an attractive financial profile with mid-single-digit sales growth, major margin expansion potential, and double-digit EPS growth beyond 2020," Bloomberg reported.
Alcon is now valued at about 30 times projected 2019 earnings of $1.90 a share.