Benchmark Raises Price Target on STAAR Surgical (STAA), Notes Developments Outweigh Earnings Miss
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Price: $23.33 +1.13%
Rating Summary:
4 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Benchmark is reaffirming its Buy rating on shares of STAAR Surgical (NASDAQ: STAA) and is raising its price target from $10 to $12.50 following its quarterly results.
The firm believes STAAR's significant developments over the quarter outweigh the $0.03 miss in earnings for the quarter. Benchmark reports that STAA benefits more greatly from a weak dollar than Eurom Yen, and Swiss Frank. The company was able to generate $0.13 per share in cash over the past nine months, much greater than the $0.15 per share loss over the same period last year.
An analyst at the firm highlights some of developments that management has made, STAAR has cleared key Japan toric regulatory hurdles such that we now anticipate launch very soon. There has been important progress toward US FDA Toric ICL clearance and all outstanding questions have now been addressed by STAAR. FDA clearance is highly uncertain but could occur at any time and is likely during 2012, in our estimation. European V4c launch is proceeding well and corresponding regulatory approvals are anticipated within three months in South Korea, in 1Q12 in China, and in 2H12 in India. International markets continue to expand rapidly. China expanded 232% to $1.8 million revenue in Q3. Gross margin expanded 1.7% sequentially, driven by continued favorably shifting mix toward ICLs, which are now 52% of sales. Mix is also improving within the IOL product line as higher margin NanoFLEX and preloaded cataract lenses are replacing older lower-margin products. Within three months, we anticipate European NanoFLEX IOL toric lens approval to support expansion into new sales territories with a higher margin cataract product."
Benchmark currently estimates EPS of $0.06 on $63.5 million in sales for 2011; and EPS of $0.23 on $73.6 million in sales for 2012.
For more ratings news on STAAR Surgical click here and for the rating history of STAAR Surgical click here.
Shares of STAAR Surgical closed at $9.95 yesterday.
The firm believes STAAR's significant developments over the quarter outweigh the $0.03 miss in earnings for the quarter. Benchmark reports that STAA benefits more greatly from a weak dollar than Eurom Yen, and Swiss Frank. The company was able to generate $0.13 per share in cash over the past nine months, much greater than the $0.15 per share loss over the same period last year.
An analyst at the firm highlights some of developments that management has made, STAAR has cleared key Japan toric regulatory hurdles such that we now anticipate launch very soon. There has been important progress toward US FDA Toric ICL clearance and all outstanding questions have now been addressed by STAAR. FDA clearance is highly uncertain but could occur at any time and is likely during 2012, in our estimation. European V4c launch is proceeding well and corresponding regulatory approvals are anticipated within three months in South Korea, in 1Q12 in China, and in 2H12 in India. International markets continue to expand rapidly. China expanded 232% to $1.8 million revenue in Q3. Gross margin expanded 1.7% sequentially, driven by continued favorably shifting mix toward ICLs, which are now 52% of sales. Mix is also improving within the IOL product line as higher margin NanoFLEX and preloaded cataract lenses are replacing older lower-margin products. Within three months, we anticipate European NanoFLEX IOL toric lens approval to support expansion into new sales territories with a higher margin cataract product."
Benchmark currently estimates EPS of $0.06 on $63.5 million in sales for 2011; and EPS of $0.23 on $73.6 million in sales for 2012.
For more ratings news on STAAR Surgical click here and for the rating history of STAAR Surgical click here.
Shares of STAAR Surgical closed at $9.95 yesterday.
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