STAAR Surgical (STAA) needs to show that the rebound in China is sustainable after the firm reported a much higher preliminary Q1 net sales than consensus, Wedbush said in a note Thursday.
Late Wednesday, the company said it expects fiscal Q1 preliminary net sales of over $90 million, up from $42.6 million a year earlier. Analysts polled by FactSet expect $67.6 million.
The outperformance was driven by China, its largest market, along with continued double-digit growth in the Americas.
"The preliminary 1Q26 revenues is good evidence, but we
hesitate to chase STAA shares without conviction that the improved trend is sustainable and is not being driven primarily by distribution channel fill," the report said.
Wedbush raised its price target to $26 from $21 while keeping its neutral rating, saying that the risk/reward profile is balanced.
Price: 26.14, Change: +5.26, Percent Change: +25.19
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