Staar Surgical's (STAA) recent quarterly results continue to boost confidence that the medical technology company is "either at or nearing an inflection point" for a rebound of its China business after issues it faced, Wedbush Securities said in a note to investors on Friday.
The company's Q2 2025 sales suffered as a result of low shipments to China, while its preliminary Q2 2026 sales showed growth in China as well as the broader Asia-Pacific region and double-digit percentage growth in the Americas, even as sales in the Europe, Middle East, Africa region declined by a low single-digit percentage, the note said.
After the market closed on Thursday, Staar reported Q2 preliminary net sales of more than $90 million, up from $44.3 million a year earlier. Analysts surveyed by FactSet were looking for $90.2 million.
The company's continued dominant market position in eye implants, continued growth outside of China, proprietary technology, and "favorable" long-term trends give the company "multiple paths to value creation," the note said.
Wedbush reiterated its outperform rating on the company and its 12-month price target of $40.
Shares of the company were down more than 8% in recent Friday premarket activity.
