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Investing.com - BTIG downgraded RxSight Inc. (NASDAQ:RXST) from Buy to Neutral on Wednesday, removing its price target following disappointing preliminary second-quarter results. The stock, trading near its 52-week low of $12.38, has declined over 77% in the past year, according to InvestingPro data.
The medical device company reported preliminary Q2 revenue of $33.6 million, significantly below analyst expectations of $39.8 million. The shortfall stemmed from declining utilization rates, which fell 21% year-over-year, and weak Light Delivery Device (LDD) sales that plummeted 49% compared to the same period last year. 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.
RxSight, which manufactures light-adjustable intraocular lens technology for cataract patients, has drastically reduced its fiscal year 2025 guidance to approximately $125 million at the midpoint, down from its previous outlook of $167.5 million.
BTIG cited intensifying competitive pressures in the premium intraocular lens (IOL) segment as a key factor in RxSight’s struggles. The May launch of Unity and PanOptix Pro by Alcon (NYSE:ALC) has created what BTIG describes as a "tough competitive environment that is not abating."
The research firm expressed concerns about RxSight’s "inability to navigate these challenges" and noted that the company needs to readjust its sales processes, suggesting a potentially lengthy recovery period ahead. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels. Subscribers can access 8 additional ProTips and a comprehensive analysis through the Pro Research Report, which provides detailed insights into RxSight’s financial health and growth prospects.
In other recent news, RxSight Inc. announced preliminary second-quarter 2025 revenue of approximately $33.6 million, marking a 4% decrease compared to the same period last year. The company also revised its full-year 2025 revenue guidance downward, now expecting between $120 million and $130 million, significantly lower than the previous forecast of $160 million to $175 million. This guidance cut follows disappointing sales of Light Delivery Devices, which fell 49% year-over-year. In response to these challenges, Wells Fargo (NYSE:WFC) downgraded RxSight from Overweight to Equal Weight, citing concerns over sales trends and structural issues. Meanwhile, Stifel maintained a Hold rating, noting a shift in surgeon sentiment toward the company’s Light Adjustable Lens technology. Despite these developments, RxSight raised its gross margin guidance to 72-74% and reduced its operating expense forecast to $145-155 million. The company also reported preliminary cash, cash equivalents, and short-term investments of $227.5 million as of June 30, 2025.
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