STAA - Canaccord cuts STAAR to hold citing US adoption challenges for EVO lenses

2023-08-03 15:01:12 ET

Canaccord Genuity has downgraded STAAR Surgical ( NASDAQ: STAA ) to hold, citing slower-than-expected adoption of its surgically implanted EVO lenses in the US and economic headwinds in Europe and South Korea.

Canaccord said that while demand in China for the product appears to be strong, it expects the "road to be bumpy" for the company as it grapples with overcoming the challenges its facing in the US. Longer term, Canaccord said it still believes "strongly" in the product and expects it to be a "meaningful" competitor to LASIK surgery.

The investment bank believes STAAR has a strong balance sheet and cash flow to help it "weather the storm" as management executes on its plan to boost US sales. It added that the turnaround could take four to six quarters to gain traction, which it believes is needed for the "stock to work again."

Canaccord reduced its price target for the stock to $48 from $77.

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