Cautious Hold Rating on Staar Surgical Amid Modest Improvements in Chinese Market

Needham analyst David Saxon has maintained their neutral stance on STAA stock, giving a Hold rating on May 19.

David Saxon has given his Hold rating due to a combination of factors related to Staar Surgical’s performance in the Chinese market. While there are positive signs indicating an improvement in the refractive market in China, the changes are not substantial enough to alter the overall risk/reward assessment for the stock.
Despite the incremental positive outlook, the modest improvement observed does not justify a shift from the current Hold rating. The focus remains on the pace of reducing channel inventory in the first half of 2025, which is crucial for revenue recognition in the latter half of the year. Therefore, the Hold rating reflects a cautious approach given the current market conditions and the company’s exposure to the Chinese market.

According to TipRanks, Saxon is an analyst with an average return of -1.1% and a 36.78% success rate. Saxon covers the Healthcare sector, focusing on stocks such as Alcon, RxSight, and ZimVie Inc.

In another report released on May 19, Jefferies also maintained a Hold rating on the stock with a $21.00 price target.