STAAR Surgical stock rating downgraded to Neutral by Sidoti on Alcon deal

Investing.com - STAAR Surgical (NASDAQ:STAA) stock rating was downgraded from Buy to Neutral by Sidoti on Tuesday, following the announcement of a definitive acquisition agreement with Alcon Inc. (NYSE:ALC). According to InvestingPro data, STAAR maintains a strong balance sheet with more cash than debt and a healthy current ratio of 4.78x.

Sidoti raised its price target on STAAR Surgical to $28.00 from $27.00, matching the takeover price offered by Alcon. The acquisition deal values STAAR Surgical at $1.5 billion in cash, representing $28 per share, a significant premium to the company’s current market capitalization of $1.33 billion.

The takeover price represents a 51% premium to STAAR Surgical’s closing price of $18.49 on Monday, according to Sidoti’s analysis. The firm noted that the acquisition price equates to approximately 6 times their estimated 2025 sales for STAAR Surgical.

Sidoti’s previous price target of $27 was based on applying a 55x multiple to their 2026 earnings per share estimate of $0.49 for the company. The rating downgrade reflects the pending acquisition status rather than a change in the company’s fundamentals.

Alcon, a major player in the eye care industry, is set to acquire STAAR Surgical, which specializes in implantable lenses for vision correction, in an all-cash transaction.

In other recent news, STAAR Surgical has been acquired by Alcon in a deal valued at approximately $1.5 billion. Alcon will purchase all outstanding shares of STAAR for $28 per share in cash, representing significant premiums over STAAR’s average and recent stock prices. This acquisition has prompted Canaccord Genuity to raise its price target for STAAR Surgical to $28 while maintaining a Hold rating. Jefferies also increased its price target to $21, following STAAR Surgical’s first-quarter revenue report, which exceeded expectations with $43 million compared to a consensus estimate of $40 million.

The company has appointed Deborah Andrews as the new Chief Financial Officer, effective June 25, 2025. Andrews has previously served as CFO and has been the Interim CFO since March 2025. Piper Sandler has maintained a Neutral rating on STAAR Surgical, citing challenges in its China business and recent management changes as factors. Despite these challenges, the company has provided positive updates on the growth of ICL (TASE:ICL) procedures in China and efforts to mitigate tariffs.

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