STAAR Surgical Nearing Inflection Point for Full China Rebound, Wedbush Says

MT Newswires Live05-14

STAAR Surgical (STAA) is already at or is nearing an inflection point for a full China rebound, Wedbush Securities said in a Thursday note.

The brokerage said the company has the potential to exceed even their bull-case scenario in the coming quarters and further incremental recovery in China will likely lead to a re-rating of its valuation.

Wedbush said STAAR's dominant market position in phakic intraocular lenses, continued growth outside China and favorable long-term industry dynamics provide multiple paths to value creation.

Analysts said the company reported "strong" Q1 results, beating both Wedbush's raised estimates and consensus expectations. Results were driven by a stronger-than-expected recovery in China and continued double-digit US growth.

The distributor inventory levels in China remained at or below contractual targets, suggesting revenue was driven by genuine market demand rather than channel restocking. The company could benefit from seasonal strength in China's summer high season during Q2 and Q3, according to the note.

Wedbush raised STAAR Surgical's 2026 revenue estimate to $350.1 million from $320.2 million. Analysts polled by FactSet expect $326.1 million.

The firm upgraded the stock's rating to outperform from neutral, and raised its price target to $40 from $26.

Price: 33.36, Change: +3.96, Percent Change: +13.48

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