Tom Frinzi Staar Surgical
Tom Frinzi. [Image courtesy of Staar Surgical]

Analysts called a recent corner office switch at Staar Surgical (Nasdaq:STAA) a “curve ball,” leaving them with questions for the company.

Last week, Staar announced the retirement of CEO Caren Mason, who held the role since 2015. The company named Thomas Frinzi, its current board chair, as her replacement.

According to BTIG analysts Ryan Zimmerman and Sam Durno, Staar provided little clarity over the reason behind the leadership change. They wrote in a report that management claimed the move “had been in the works for some time.” However, they asked why, with the change in the works, Staar elected to not reiterate its fiscal 2023 guidance of $355 million.

“If new CEO Tom Frinzi had been involved in STAA’s 3-year strategic plan (FY22 – FY25) as indicated, surely he would be comfortable with FY23 guidance,” they wrote. “We think the next step is a FY23 guidance reset given the aforementioned events.”

They added that it “behooves” Frinzi to set achievable results for the coming fiscal year. Realistic expectations around the launch of EVO lenses also remain imperative. Zimmerman and Durno said they priced in 25% growth for Staar, but if the company resets below those levels, shares may fall into the $30 range. Shares of STAA closed today at $46.82 apiece.

“None of this feels great and frankly shares are not likely to move until this cleaning event takes place,” Zimmerman and Durno wrote.

The duo retained a buy rating for Staar because they believe the company may still “prove the naysayers wrong” in the next couple of years. They added that Staar has the cash to “add more muscle” behind its U.S. Evo launch. FDA’s concerns over LASIK could also aid Staar’s alternative offering.