Shares of Advanced Medical Optics Inc. surged Monday after Wall Street reacted well to its third-quarter results.
Santa Ana-based Advanced Medical’s shares closed 20% higher Monday with a market value of $455 million after jumping 30.4% on Friday.
The maker of lasers, cataract surgical products and contact lens solutions reported a third-quarter profit on Friday that beat expectations. It also backed its full-year outlook.
Analysts’ reactions were more measured.
Peter Bye of Jefferies & Co. upgraded Advanced Medical to “hold” from “underperform,” although he did cut the company’s target price and 2009 revenue forecast.
Bye cited weakening demand for laser vision because of global economic weakness and slowing contact lens care sales.
Other analysts also cut their price targets, including Amit Bhalla of Citi Investment Research and Lawrence Keusch of Goldman Sachs & Co.
Keusch predicted laser vision correction procedures would fall 23% in 2009 as consumers cut spending and sales of laser surgery systems decrease.
