Staar Surgical: Hold Rating Amid Revenue Adjustments and Market Challenges

BTIG analyst Ryan Zimmerman has maintained their neutral stance on STAA stock, giving a Hold rating on October 16.

Ryan Zimmerman has given his Hold rating due to a combination of factors influencing Staar Surgical’s current market position. The company’s preliminary third-quarter revenue exceeded expectations, but this was largely due to a significant shipment to China that will not be recognized until December 2024. When adjusted for this shipment, the underlying sales figures reveal a substantial decline, particularly in the Chinese market, indicating ongoing challenges in demand.
Additionally, while there was some growth in sales outside of China, it was not enough to offset the decreased orders from Chinese distributors. The valuation of Staar Surgical’s stock is also a factor, as it is currently trading at a multiple that reflects the pending acquisition by Alcon. Given these circumstances, the stock is unlikely to experience significant movement, leading to the Hold rating.

In another report released on October 16, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $25.00 price target.