STAA - STAAR Surgical Company: Potential Buy After Long-Term Valuation Downgrade

2024-03-13 10:43:07 ET

Summary

• STAAR Surgical Company's share price has experienced significant volatility, dropping over 60% in less than 9 months between 2022 and 2023.
• The company's 2023 earnings showed a 13% increase in net sales, however, with strong performance in China offsetting weaker growth in other regions.
• Despite underwhelming performance in the U.S. and India, there is potential for STAAR Surgical to build momentum and achieve its projected sales growth, leading to long-term upside for the share price.

Investment Overview

Back in November 2020, in a post for Seeking Alpha, I gave STAAR Surgical Company ( STAA ) (" STAAR"), a manufacturer of intraocular lenses for patients seeking refractive vision correction, a "buy" rating. This was despite noting that, by most investment metrics, its share price looked significantly overvalued.

The company's biggest markets in 2020 were China and Japan, and that remains the case today. However, in my 2020 note I pointed to the fact that its EVO/EVO+ Visian implantable collamer lenses ("ICLs") looked likely to be granted approval in the U.S., significantly increasing the size of the company's addressable market....

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