In a report released yesterday, John Young CFA from Canaccord Genuity maintained a Hold rating on Staar Surgical (STAA – Research Report), with a price target of $20.00.
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John Young CFA has given his Hold rating due to a combination of factors impacting Staar Surgical’s current and future performance. The company faced a challenging first quarter, with results aligning with expectations, yet the management’s optimistic tone during the earnings call suggested potential for future improvement. Despite the withdrawal of formal guidance due to macroeconomic uncertainties and management changes, there is confidence in achieving prior revenue targets in China by the second half of 2025.
However, the company’s growth outside China, while solid, is insufficient to drive overall top-line growth. The new management has initiated cost-cutting measures to enhance long-term profitability and cash flow, and has taken steps to mitigate tariff impacts through strategic inventory management. While the EVO ICL product is strong, the stock’s performance is contingent on stabilization in China, and concerns may shift to the U.S. market’s commercial viability once that occurs. Thus, the Hold rating reflects the need for execution amidst these uncertainties.
Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STAA in relation to earlier this year.