RxSight stock price target cut by UBS to $8 on weak LDD placements

Published 08/08/2025, 12:24
RxSight stock price target cut by UBS to $8 on weak LDD placements

Investing.com - UBS lowered its price target on RxSight Inc. (NASDAQ:RXST) to $8.00 from $16.00 on Friday, while maintaining a Neutral rating following the company’s second-quarter results. According to InvestingPro data, the stock has declined over 84% in the past year, with analyst targets ranging from $8 to $22.

RxSight reported second-quarter 2025 sales of $33.637 million, with Light Adjustable Lens (LAL) unit growth of 13% year-over-year, representing 27,380 LAL units sold. The company experienced a significant deceleration in Light Delivery Device (LDD) placements, which fell 49% year-over-year to just 40 units sold. Despite these challenges, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 12.68 and holds more cash than debt on its balance sheet.

The LDD placement figure came in approximately 49% below consensus estimates and UBS’s own projections at the time of RxSight’s preannouncement. The company reiterated its previously lowered 2025 total revenue guidance range of $120 million to $130 million, which represents an 11% year-over-year decline at the midpoint. InvestingPro data reveals that four analysts have recently revised their earnings expectations downward, with the company not expected to be profitable this year.

RxSight cited a strategic shift to focus more on existing accounts rather than new placements. The company has begun limited product launches in both South Korea and Singapore, along with establishing new clinical partnerships in the European Union and United Kingdom (TADAWUL:4280), where the premium intraocular lens segment represents a larger portion of the market.

UBS expressed concerns about competitive trialing dynamics and continued spending constraints in the sector, noting a lack of conviction to raise assumptions until there is evidence that a turnaround is occurring for RxSight.

In other recent news, RxSight Inc. reported a wider-than-expected loss for the second quarter of 2025. The company’s earnings per share were -$0.29, missing analysts’ forecasts of -$0.19 by 52.63%. Revenue for the quarter was $33.6 million, which fell short of the expected $38.55 million, marking a 12.84% negative surprise. Despite these results, investor sentiment remained optimistic, as reflected in the aftermarket trading. The stock rose by 3.18% to $7.79, indicating confidence in RxSight’s long-term growth potential and strategic initiatives. These developments highlight the company’s current financial performance and investor outlook.

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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