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On Wednesday, Jefferies analyst Young Li revised the price target for RxSight Inc. (NASDAQ: RXST) to $50, down from the previous $60, while continuing to endorse the stock with a Buy rating. The stock, currently trading near its 52-week low of $26.29, has experienced a significant decline of approximately 48% over the past six months, according to InvestingPro data. The adjustment follows RxSight’s report of fourth-quarter revenues amounting to $40.2 million, representing a 41% increase, which aligned with the preliminary announcement on January 12, 2025. The company also confirmed its guidance for the year 2025. InvestingPro data reveals impressive metrics, including a 67.5% revenue growth over the last twelve months and a robust gross margin of 68.4%.
RxSight’s financial results indicate that the first and third quarters tend to be seasonally weaker, while the second and fourth quarters show stronger performance. Given the robust results from the fourth quarter of 2024, it is anticipated that the first quarter of 2025 will show a decline when compared to the previous quarter. The company expects growth in the usage of Light Adjustable Lenses (LDDs) throughout 2025, although specific details were not disclosed. The company maintains a strong financial position with a current ratio of 12.67, indicating excellent liquidity to support its growth initiatives.
Li expressed confidence in the long-term prospects of RxSight, particularly with the anticipation of upcoming approvals in markets outside the United States. The analyst’s outlook suggests a positive view of the company’s future despite the reduced quarterly expectations and the adjusted price target.
Investors are looking at the company’s performance and Jefferies’ analysis as RxSight continues to navigate the market dynamics. The reiterated 2025 guidance and the expected growth in LDDs could provide a basis for the maintained Buy rating despite the lower price target. As RxSight works towards obtaining international approvals, the company’s stock remains under the watch of industry observers and investors alike.
In other recent news, RxSight Inc. reported its fourth-quarter 2024 earnings, revealing a significant earnings per share (EPS) of $0.03, which exceeded the forecasted EPS of -$0.17. The company’s revenue for the quarter was $40.2 million, reflecting a 41% year-over-year growth, although it slightly missed the expected $40.39 million. The revenue increase was driven by strong sales of Light Adjustable Lenses (LALs) and the expansion of Light Delivery Devices (LDDs). RxSight’s gross margin improved to 71.6% from 61.8% the previous year, indicating better operational efficiency. For the fiscal year 2025, the company reaffirmed its revenue guidance, projecting between $185 million and $197 million, suggesting a growth rate of 32% to 41%. BTIG analyst Ryan Zimmerman adjusted the price target for RxSight to $44 from $58, maintaining a Buy rating on the stock. Zimmerman’s revision came after the company’s financial results aligned with expectations, and he anticipates continued growth in LDD sales and productivity. RxSight’s management expressed satisfaction with the progress of their LAL launch, with the company capturing over 10% of the premium market.
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