Jefferies has lowered its rating on RxSight (RXST, Financial) from Buy to Hold, alongside a significant reduction in its price target from $24 to $9. The decision follows the company's second quarter in a row of disappointing performance, marked by an extended capital selling cycle, slower uptake from new customers, and stagnant usage among existing clients. Despite RxSight's efforts to realign its commercial strategy to boost growth and customer engagement, Jefferies remains cautious about the speed of the company's potential rebound and the timing of a possible turnaround.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for RxSight Inc (RXST, Financial) is $18.30 with a high estimate of $28.00 and a low estimate of $9.00. The average target implies an upside of 130.19% from the current price of $7.95. More detailed estimate data can be found on the RxSight Inc (RXST) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, RxSight Inc's (RXST, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for RxSight Inc (RXST, Financial) in one year is $59.29, suggesting a upside of 645.79% from the current price of $7.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the RxSight Inc (RXST) Summary page.
RXST Key Business Developments
Release Date: July 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- RxSight Inc (RXST, Financial) has implemented a commercial pivot to address the decline in LAL utilization, focusing on clinical support, education, and value-added engagement efforts.
- The company is leveraging unique analytics to drive sustainable same-store sales and new customer commitment.
- RxSight Inc (RXST) has increased its gross margin guidance to 72%-74%, up from the previous range of 71%-73%, due to a shift in revenue mix towards higher-margin LAL sales.
- The company is expanding its peer-to-peer programs to support practices at every stage of the LAL adoption journey, enhancing expertise and engagement.
- RxSight Inc (RXST) is confident in its strategic priorities to unlock the full potential of its platform, supported by a strong balance sheet and a best-in-class field organization.
Negative Points
- RxSight Inc (RXST) reported a significant decline in LDD sales, down 49% from the previous year and 45% from the previous quarter.
- The company revised its full-year 2025 revenue guidance downwards, now expecting a decrease of 14% to 7% compared to 2024.
- LAL utilization was down about 21% year over year in Q2, with guidance implying further declines in the second half of the year.
- Newer customers are adopting more slowly than previous ones, requiring more support to move up the adoption curve.
- The company faces competitive pressures from new product launches in the multifocal lens space, impacting its market share.
