STAA Should I Buy
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STAAR Surgical Co (STAA) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The recent upgrades in analyst ratings, strong preliminary Q1 revenue exceeding $90M, and growth in key markets like China indicate positive momentum. The stock is trading at a discount, and while there are risks, the long-term growth potential outweighs the negatives.
The MACD is positive and contracting, indicating a potential upward trend. RSI is neutral at 59.088, suggesting no overbought or oversold conditions. The stock is trading near its support level (S1: 24.001), which may provide a good entry point. Key resistance levels are at 26.513 and 27.289.
Preliminary Q1 revenue of over $90M, driven by strong growth in China and the Americas.
Analyst upgrades from Canaccord and Wedbush, citing undervaluation and strong recovery in China.
Gross margin improvement to 75.68%, up 17.06% YoY.
Net income dropped to -$18.31M, down 46.51% YoY.
EPS declined to -0.37, down 46.38% YoY.
Concerns about long-term growth visibility and uncertainty in the China refractive end market.
In 2025/Q4, revenue increased by 18.08% YoY to $57.8M, indicating strong top-line growth. However, net income and EPS saw significant declines, reflecting profitability challenges. Gross margin improved to 75.68%, showcasing operational efficiency gains.
Recent upgrades include Canaccord raising the price target to $27 and upgrading to Buy, citing strong Q1 revenue and undervaluation. Wedbush raised the price target to $26, maintaining a Neutral rating but highlighting strong growth in China. Earlier downgrades from Stifel and Mizuho were based on concerns about China and growth visibility.
