The Commerce Commission is currently investigating possible misrepresentations of the mesh's performance characteristics that could breach the Fair Trading Act.
Greg Smith, head of research at Fat Prophets, said sentiment was against the company after a run of problems.
"It's fair to say sentiment is at a fairly low ebb. Management came out with an earnings downgrade last month, there are the Huntly casings all over the media, it's one thing after another for them".
He added that the only way it could be turned around was through results: "They need to hit the revised full year earnings, perhaps exceed it a little bit, that could be a catalyst."
Smith said Steel & Tube could offer value for investors who were willing to take the risk.
"When the market is running hard and running well, the New Zealand market has been a strong performer the last few years, value doesn't abound as much. It stands out in that regard, a bit of an ugly duckling at the moment. But any stock that's trading at single-digit multiples requires a little bit of a leap of faith".