On Monday, STAAR Surgical (NASDAQ:STAA), a company specializing in implantable lens technologies, had its stock price target increased by Canaccord Genuity from $32.00 to $46.00, while the firm maintained a Hold rating on the stock. The adjustment follows STAAR Surgical’s recent preannouncement that its expected revenue for the first quarter would surpass $77 million.

The revision by Canaccord Genuity comes after STAAR Surgical’s disclosure that its Q1 revenue is anticipated to be above the previously forecasted figures. The analyst has updated the Q1/24 revenue estimate to $77.0 million, marking a 4.7% year-over-year increase from the prior estimate of $71.9 million. This update is in response to the company’s press release indicating a revenue expectation exceeding $77 million.

In the United States, the revenue estimate for the first quarter has been raised to $4.6 million, up from $4.4 million, reflecting an expected $5 million in revenue within the quarter. The forecast for revenue from China has also been increased, with the new estimate at $37.9 million compared to the previous $35.5 million.

For the full fiscal year 2024, Canaccord Genuity is now projecting revenues of $339.2 million for STAAR Surgical, which aligns with the upper end of the company’s guidance range of $335 million to $340 million. Despite this, the firm has made a slight adjustment to the expected EBITDA, setting it at $35.4 million, which is marginally below the company’s guided adjusted EBITDA of $36 million.

The firm has chosen to exercise caution regarding the company’s performance below the line, as there was no specific commentary on this aspect in STAAR Surgical’s press release. The full Q1 earnings will be reported on May 8th, and until then, Canaccord Genuity prefers to maintain a conservative stance.

With the updated figures and expectations, the Hold rating remains in place, albeit with a significantly higher price target.

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