Stifel Asset Management has trimmed its 12-month price target for STAAR Surgical (NASDAQ: STAA) to $19.00 from $28.00 and left its rating at Hold. STAAR shares were quoted at $17.58, reflecting a near 24% decline year-to-date and trading within a 52-week range of $13.50 to $30.81. Data from InvestingPro indicates the stock is trading close to its Fair Value.
The firm pointed to notable underperformance since early August, which Stifel attributes to mixed fundamental updates following STAAR’s now-defunct acquisition announcement with Alcon. InvestingPro data cited in Stifel’s research shows the stock has fallen 35.5% over the past six months, and a ProTip highlighted that the relative strength index suggests the shares are in oversold territory.
As part of its due diligence, Stifel spoke with two refractive surgeons practicing in China. Those conversations, Stifel reports, indicate that STAAR’s Implantable Collamer Lens - ICL - continues to pick up market share and at present faces limited direct impact from competitor Eyebright. Despite that competitive resilience, the surgeons described procedure volume trends in the region as relatively soft.
Stifel’s assessment is that persistent uncertainty in the Chinese refractive market could hamper STAAR’s ability to reestablish a normalized global growth rate in the high single digits or better - a level Stifel believes the company would need to resume positive momentum in the stock. The firm said it will look for clear signs of improvement in the Chinese end market and a period of management stability with an incoming CEO before adopting a more constructive stance. At the same time, Stifel acknowledged the potential durability of ICL against Chinese competition and maintained expectations for solid profitability in 2026.
Corporate governance and strategic developments have continued to unfold. Neal C. Bradsher was elected as the new chair of STAAR’s board following a cooperation agreement with Broadwood Partners, identified as the company’s largest shareholder. That agreement also resulted in the appointment of Richard LeBuhn of Broadwood Partners and Christopher Wang of Yunqi Capital to the board. At the same time, STAAR Chair Elizabeth Yeu and board member CEO Stephen Farrell stepped down from their board roles; Farrell will remain chief executive through early 2026.
STAAR’s proposed acquisition by Alcon did not secure the required shareholder approval, a point noted by Needham, which maintained its Hold rating on the stock. In parallel, Morgan Stanley reiterated an Underweight rating with a $13.00 price target, and Canaccord Genuity adjusted its price target from $30.75 to $22.00 while keeping a Hold rating. These analyst actions accompany STAAR’s ongoing strategic adjustments and shareholder engagements.
The combination of near-term demand softness in China, the board reorganization, and the failure of the Alcon deal to obtain approval leaves analysts watching for clearer signals of demand recovery and greater leadership stability before shifting to a more favorable view of the shares.
Key points
- Stifel lowered its price target on STAAR Surgical to $19 from $28 and maintained a Hold rating; the stock trades near $17.58 and is close to InvestingPro’s Fair Value estimate.
- Conversations with two Chinese refractive surgeons indicate ICL market share gains but soft procedure volumes in China, prompting caution about near-term global growth resumption.
- Significant corporate developments include a board leadership change after a Broadwood Partners agreement, continued CEO tenure through early 2026, and the failure of the proposed Alcon acquisition to receive shareholder approval; other brokerages have also stayed cautious.
Risks and uncertainties
- Ongoing uncertainty in the Chinese refractive market could delay STAAR’s return to normalized worldwide growth in the high single digits or better - a key variable for revenue and market momentum. This risk primarily affects the medical devices and ophthalmology segments.
- Management transition and board restructuring add near-term governance uncertainty until a new CEO and a stable leadership structure are in place - a factor investors and lenders monitor closely.
- Failure of the proposed Alcon acquisition to secure requisite shareholder approval introduces strategic uncertainty and may influence investor sentiment and access to potential strategic benefits from such a transaction.