STAAR Surgical's Stock Spikes 45.43% After Alcon Takeover Announcement

STAAR Surgical Company's stock price surged 45.43% this week after Alcon agreed to acquire the company for $28 per share, a 59% premium to its 90-day VWAP. The deal is expected to be carried out in cash and values STAAR Surgical at approximately $1.5 billion.

STAAR Surgical Company's (STAA) stock price surged 45.43% this week following Alcon's agreement to acquire the company for $28 per share, a 59% premium to its 90-day volume-weighted average price (VWAP). The deal, valued at approximately $1.5 billion, is expected to be completed in cash [2].

The acquisition announcement comes as a significant strategic move for Alcon, a global leader in eye care, aiming to enhance its laser vision correction business and provide a comprehensive range of myopia treatment options. The deal positions Alcon to address the growing global demand for myopia solutions by leveraging STAAR's innovative EVO Implantable Collamer Lens (ICL) technology [2].

Stifel, a research firm, downgraded STAAR Surgical's stock from Buy to Hold, raising its price target to $28.00 from $20.00. The downgrade was attributed to the acquisition's potential dilutive impact in the first year and modest accretive effect in the second year, despite expected cost synergies [3]. However, the stock remains in overbought territory, as indicated by InvestingPro data.

Prior to the acquisition, STAAR Surgical had outperformed the market this year, with its stock adding about 11.2% compared to the S&P 500's gain of 7.1%. The company had also surpassed consensus earnings per share (EPS) estimates three times over the last four quarters [1].

STAAR Surgical's recent financial performance and strategic acquisition by Alcon have drawn the attention of investors. The company's stock has seen a significant price movement, and its future performance will largely depend on the execution of the acquisition and the market's response to the integration of STAAR's technology into Alcon's product portfolio.

References:
[1] https://www.nasdaq.com/articles/staar-surgical-staa-reports-q2-loss-beats-revenue-estimates
[2] https://www.theglobeandmail.com/investing/markets/stocks/ALC-N/pressreleases/33919056/alcon-to-acquire-staar-surgical-in-1-5-billion-deal/
[3] https://www.investing.com/news/analyst-ratings/stifel-downgrades-staar-surgical-stock-to-hold-following-alcon-acquisition-93CH-4175074