S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com - Stifel has reiterated its Hold rating on RxSight Inc. (NASDAQ:RXST), citing a noticeable shift in surgeon sentiment regarding the company’s Light Adjustable Lens (LAL) technology. The company’s stock, currently trading at $13.14, has declined over 76% in the past year, according to InvestingPro data.
The investment firm observed that surgeon feedback about RxSight’s LAL has become more mixed over the past three to six months, though sentiment remains "relatively positive on a net basis." Stifel analyst Tom Stephan noted this change represents a shift from previously "extremely positive" baseline sentiment. Despite the market challenges, RxSight maintains strong financial health with a current ratio of 12.68 and more cash than debt on its balance sheet.
Several recurring themes have emerged in the changing conversation around the technology, including post lock-in changes and refractive shifts, an increasing number of dissatisfied patients, surgeon dissatisfaction with the LAL+ product, and issues with Light Delivery Device (LDD) tracking and user error.
For years, RxSight’s LAL technology was widely regarded among users as "a near-flawless innovation" and considered a "standout advancement" in the ophthalmology field, according to Stifel’s research. The technology had been frequently described as the best-in-class premium intraocular lens (IOL) option.
Stifel attributed some of the sentiment shift to RxSight’s rapid growth, noting that "more volumes equal more opportunities for potential issues, challenges, etc." The firm maintained its Hold rating on the stock amid these evolving market dynamics. With revenue growth of 46.7% in the last twelve months, InvestingPro analysis reveals 8 additional key insights about RxSight’s potential, available in the comprehensive Pro Research Report covering 1,400+ US stocks.
In other recent news, RxSight Inc. reported its first-quarter 2025 earnings, showcasing a smaller-than-expected loss and significant revenue growth. The company posted an earnings per share (EPS) of -$0.03, which was a notable improvement over the projected -$0.20. Revenue reached $37.9 million, reflecting a 28% increase from the previous year, although it fell slightly short of the anticipated $39.09 million. Wells Fargo (NYSE:WFC) analyst Lawrence Biegelsen upgraded RxSight’s stock from Equal Weight to Overweight, raising the price target from $17.00 to $25.00, citing the company’s strong position in the light adjustable lens market. The analyst emphasized RxSight’s first-mover advantage, given the lengthy development processes typical in this industry. RxSight’s Light Adjustable Lens (LAL) continues to drive revenue, accounting for 72% of total revenue in the quarter. The company also reported an improved gross margin of 74.8%, up from 71.6% in the previous quarter. Additionally, RxSight provided a full-year revenue guidance of $160 million to $175 million, with expectations of a recovery in LAL volume in the latter half of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.