Alcon Inc. (Alcon) reported modest y-o-y decline in sales in 2Q 09, in-line with our estimate. Performance at the operating and net level exceeded our expectations in 2Q 09. Considering the better-than-expected performance, we maintain our positive outlook for the company. However, we believe the NYSE common stock is fairly priced at current levels. Hence, we maintain our HOLD rating for the NYSE common stock and will reassess our target price and rating in our 2Q 09 update report. We are likely to revert to a 6-12 month investment horizon as we now anticipate a significant negative currency impact on the European stock over the medium term. Therefore, although the European stock target price does not support a HOLD rating at current price levels, based on our expectation of a significant negative currency impact on the European stock, we maintain our HOLD rating. We will reassess our target price and rating in our 2Q 09 update report.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward