RxSight shares reiterated at Buy at Needham following guidance

Published 13/01/2025, 12:46
RxSight shares reiterated at Buy at Needham following guidance

On Monday, Needham & Company sustained its positive stance on RxSight Inc. (NASDAQ: RXST), maintaining a Buy rating and a $66.00 price target for the company's stock.

RxSight, a medical technology firm, recently shared its revenue forecast for the year 2025, projecting revenues to be between $185 million and $197 million. This forecast represents a year-over-year increase of 37% at the midpoint and surpasses the consensus estimate of $187 million.

The company also anticipates growth in the placement of its Light Adjustable Lens (LDD) systems in 2025, which is expected to exceed the 305 placements in 2024. Although the guidance includes some international revenue, it is projected to be minimal, with RxSight considering 2025 as a foundational year for overseas market development. Substantial international revenue contributions are likely to commence in 2026 or later.

In terms of profitability, RxSight has provided guidance for gross margins in the range of 71-73%, slightly above the consensus expectation of 70.7%. Operating expenses are estimated to be between $165 million and $170 million, which includes a non-cash expense component of $22 million to $25 million.

"After speaking with management, we come away more confident on its outlook given the company's utilization trends, LDD placement outlook, and international opportunity," the analysts at Needham said, adding that they will wait to update their model.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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