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Investing.com - Canaccord Genuity raised its price target on STAAR Surgical (NASDAQ:STAA) to $28.00 from $20.00 on Tuesday, while maintaining a Hold rating on the stock. According to InvestingPro data, STAAR maintains a strong balance sheet with more cash than debt and a healthy current ratio of 4.78x.
The price target adjustment follows the announcement that Alcon (NYSE:ALC) will acquire STAAR Surgical for $28 per share, representing a total enterprise value of $1.5 billion. The acquisition price offers a 59% premium to STAAR’s 90-day volume-weighted average price and a 51% premium to the previous day’s closing price. The deal comes as STAAR faces headwinds, with InvestingPro data showing a 14.4% revenue decline in the last twelve months and negative EBITDA of $36.8 million.
Canaccord noted that the acquisition would end "the near-term pain that STAAR investors have experienced with the China business." The firm observed that Alcon appears to be positioning STAAR’s EVO product as an alternative for patients who are not candidates for LASIK, rather than as a direct LASIK alternative.
Alcon, which sells laser systems, contact lenses, intraocular lenses (IOLs), and lasers, will add STAAR’s products to its portfolio. According to the announcement, Alcon expects the acquisition to be accretive in the second year.
Canaccord Genuity maintained its Hold rating on STAAR Surgical, with the new price target reflecting the announced acquisition price.
In other recent news, STAAR Surgical Company announced that Alcon will acquire it in a transaction valued at approximately $1.5 billion. This acquisition involves Alcon purchasing all outstanding shares of STAAR for $28 per share in cash. Additionally, STAAR Surgical reported first-quarter revenues of $43 million, exceeding both consensus estimates and the company’s guidance of $40 million. In response to these developments, Jefferies raised its price target for STAAR Surgical from $18.00 to $21.00, maintaining a Hold rating.
Meanwhile, STAAR Surgical has appointed Deborah Andrews as Chief Financial Officer, effective June 25, 2025. Andrews, who previously held the CFO role at STAAR, has been serving as Interim CFO since March 2025. Piper Sandler has maintained a Neutral rating on STAAR Surgical, citing challenges in the company’s China business and recent management changes. In another strategic move, STAAR Surgical’s Board of Directors has authorized a share repurchase program of up to $30 million. This buyback reflects the company’s confidence in its growth prospects and commitment to delivering shareholder value.
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