STAAR Surgical Revises Strategy Amid Slow U.S. Adoption, Analyst Adjusts Rating to Market Perform

William Blair downgraded Staar Surgical Co STAA from Outperform to Market Perform, noting a lack of greater visibility on the geographic outlook.

Overall, while the analyst continues to think 10%-plus penetration is achievable in the U.S., an inflection in adoption and growth will likely take more time than anticipated. 

The analyst says that given some of the commentaries around the U.S., management may ultimately lower its outlook for the U.S. from the $30 million previously given. 

It says this is not a change to its long-term belief that penetration and growth can reach multiples of today’s levels, but it is taking more time and investment than anticipated.

Commentary on U.S. traction suggests that while solid progress is being made and STAAR is seeing an uptake in demand throughout the year, it is still making the foundational investments and perfecting its commercial strategy.

STAAR had initially focused on driving broad awareness through several DTC campaigns, but now it seems to be focusing on translating its investments/awareness to greater adoption. 

Price Action: STAA shares are down 5.12% at $51.99 on the last check Wednesday.