Key Points
That pundit now believes it's a buy.
He cited positive sales momentum, especially in a key market overseas.
Staar Surgical (NASDAQ: STAA) was indisputably a star stock for many investors on Tuesday. Those folks eagerly bought into the eyecare company's equity on the back of a bullish analyst update. This propelled Staar shares to a nearly 8% increase across that trading session.
A fresh look at the company
This was more than an update; it was an upgrade. Well before market open, Stifel's Thomas Stephan pushed his recommendation on Staar stock up to buy from his previous hold. He also raised his price target to $31 per share from $28.
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According to reports, Stephan wrote in his update that Staar should see higher sales than anticipated in the current half of 2026. He feels that sales of the company's small, surgically implanted lenses will rise notably, particularly in China.
He also believes that Staar is underappreciated as both a potential acquisition for a larger healthcare company, and as a developer of new products.
Seeing significant value
Staar has much going for it, not least a set of U.S. Food and Drug Administration (FDA) products that offer elegant solutions to common vision problems. China is indeed a large and rather high-potential market, and while it's unwise to buy stock in a company on the basis that it might be acquired, Staar would fit nicely in the portfolios of numerous healthcare peers.
This company is lean, focused, and operates very effectively in its niche. It's well worth considering for a buy.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.