The Night Watch: Summit Joins Visx in Cutting Prices, but Both Rise

Peer pressure was always a major concern of high school guidance counselors, who felt it could make teenagers jump off the Brooklyn Bridge.

Tonight, peer pressure caught up with Summit Technology (BEAM Quote).

No, it didn't take a fateful leap, but it did follow the lead of a rival vision-correction outfit and lower the royalty collected on laser surgery to $100 from $250. Yesterday, Visx (VISX Quote) did the same thing in hopes that lower prices will expand market share.

Last night, Visx got killed on the news that it would lower its royalty fees. Investors and analysts screamed that it would kill a vital source of revenue for the company. Today, both eye laser makers were cut by Lehman Brothers analyst David Gruber, who was pretty unhappy. How unhappy? Very. He slashed the Visx price target to 14 from 60 and dropped Summit's price target to 18 from 25. ...