Staar Surgical resumed with an Underweight at Morgan Stanley

Morgan Stanley resumed coverage of Staar Surgical (STAA) with an Underweight rating and $13 price target after the company terminated its merger agreement with Alcon (ALC). While the EVO ICL technology is “impressive,” the firm thinks the product has always been a niche product best suited for a limited addressable patient pool and it believes expansion in the U.S. and other western markets will be difficult despite the company “executing the best it can,” the analyst tells investors. The firm also calls it “a bit surprising” that shares are trading higher than they were pre-merger announcement.