We recently compiled a list of the 12 Cheap Small Cap Stocks to Invest in Before the Next Breakout. STAAR Surgical Company tops our list for being one of the best small cap stocks on our list.
TheFly reported on January 16 that Morgan Stanley resumed coverage of STAA with an underweight rating and a $13 price target following the termination of its merger deal with Alcon (ALC). The firm described STAAR’s EVO ICL technology as “impressive,” but noted that it remains a niche product with a limited group of addressable patients. Morgan Stanley added that expansion into the U.S. and other Western markets will likely be a challenge even if the company executes effectively, noting that it is “a little surprising” that the stock is trading above pre-merger levels.
At the same time, on the same day, Canaccord Genuity lowered its price target on the stock to $22 from $30.75 and maintained a Hold rating. The adjustment comes after the company’s cooperation agreement with its largest shareholder, Broadwood Partners, and the shareholders’ rejection of the Alcon merger. Canaccord changed its valuation framework back to STAAR’s standalone fundamentals instead of Alcon’s proposed transaction price.
STAAR Surgical Company (NASDAQ:STAA) is an American ophthalmic medical device company that designs, develops, manufactures and markets implantable lenses, especially the EVO family of implantable Collamer lenses (ICL), for vision correction and reducing dependence on glasses or contact lenses.
While we recognize STAA’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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