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Morgan Stanley has devalued STAAR Surgical (NASDAQ:STAA) to underweight, citing unrealistic growth expectations for the future.
The investment bank raised concerns over subdued growth forecasts in the Chinese market, projecting a lag in U.S. High Single-Digit (HSD) sales by 2026 compared to street expectations, which anticipate a surge to double-digit growth figures. They labeled this anticipated shift as excessively ambitious.
Morgan Stanley also discussed the speculation surrounding Alcon (ALC) potentially acquiring STAAR (STAA). They highlighted potential challenges, mentioning probable margin dilution and market uncertainty in China that could pose hurdles for Alcon. They speculated that this scenario presents a lower risk prospect.
In a note, the investment bank acknowledged the absence of any official statements from both companies regarding the merger rumors and asserted no confirmation of such a deal. Additionally, Morgan Stanley announced a new price target of $37 for STAAR Surgical.
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