STAAR Surgical stock target raised at Jefferies to $21

On Monday, STAAR Surgical (NASDAQ:STAA), a $952 million market cap medical device company, saw its price target increased by Jefferies from $18.00 to $21.00, while the firm maintained a Hold rating on the stock. The adjustment follows STAAR Surgical’s first-quarter revenue report, which exceeded both consensus estimates and the company’s own guidance. According to InvestingPro data, the stock has shown strong momentum recently, though it remains 55% lower over the past year.

STAAR Surgical announced first-quarter revenues of $43 million, surpassing the consensus estimate of $40 million as well as their previously issued guidance figure, also set at $40 million. The company’s new management team, aiming to restore STAAR Surgical’s credibility, has decided to withdraw guidance for the future. While InvestingPro analysis indicates strong financial health metrics with a current ratio of 4.78 and more cash than debt, analysts anticipate a sales decline in the current year. Nonetheless, they provided optimistic updates regarding the growth of ICL (TASE:ICL) procedures in China during the first quarter, the expected reduction of macro headwinds in the second half of the year, and ongoing efforts to mitigate tariffs in the near term (NT) and long term (LT).

In addition to these updates, STAAR Surgical is actively working to align its operating expenses by region in accordance with revenue contributions and growth prospects. This includes efforts to reduce expenses in the United States.

The company’s strategic moves come at a time when the new management team emphasizes building a strong foundation for STAAR Surgical’s credibility and operations. The increase in the price target reflects these positive developments, even as the company maintains a cautious stance by withdrawing future guidance.

Investors and market watchers will be keeping an eye on STAAR Surgical’s performance in the coming quarters, as the company navigates the challenges and opportunities ahead without the direction of formal guidance. For deeper insights into STAAR Surgical’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis, including additional ProTips and detailed financial metrics in the Pro Research Report.

In other recent news, STAAR Surgical reported its first-quarter 2025 financial results, revealing a wider-than-expected loss with earnings per share at -$1.10, falling short of the forecasted -$0.58. Despite this, the company exceeded revenue expectations, reporting $42.6 million against a forecast of $40.33 million. A significant decline in China sales, dropping to $389,000 from $38.5 million the previous year, was a major factor in the earnings miss. STAAR Surgical has announced a $30 million stock buyback, reflecting management’s confidence in the company’s growth prospects. Analyst firms Stifel and Canaccord Genuity have both adjusted their outlooks on STAAR Surgical, with Stifel maintaining a Buy rating and Canaccord Genuity raising its price target to $20 while keeping a Hold rating. The company has withdrawn its previous financial guidance due to macroeconomic uncertainties but anticipates a return to profitability in the second half of 2025. Additionally, STAAR Surgical plans to launch its new EVO Plus (V5) lens in China by mid-2025, aiming to stabilize its position in its largest market.

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