STAAR Surgical jumps on Stifel upgrade citing China growth potential

Investing.com -- STAAR Surgical Company (NASDAQ: STAA) shares rallied 7% in early Tuesday trade following an upgrade from Stifel, which pointed to improving international sales momentum and favorable product mix trends. Analyst Thomas Stephan raised Stifel's rating on the ophthalmic medical device manufacturer to Buy from Hold while lifting its price target to $31 from $28.

Looking further ahead, the analyst anticipates that the ongoing adoption of the company's higher-priced EVO+ lens family will serve as a primary growth catalyst into 2027. That product momentum, combined with the lapping of prior geopolitical and regional sales headwinds in the Middle East, positions the business for sustained expansion.

According to Stifel's multi-year scenario modeling, STAAR Surgical is projected to achieve an 11% compound annual revenue growth rate through 2028, outpacing current consensus estimates of 8%. The firm's $31 price target implies an enterprise value-to-sales multiple of 3.5x, presenting an attractive entry point relative to recent trading valuation levels.

Beyond near-term financial drivers, Stephan noted market expectations appear to underappreciate the long-term strategic potential of the company's early-stage research and development pipeline. In particular, pipeline initiatives targeting presbyopia could significantly expand the addressable market for implantable collamer lenses over time.

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