In a report released yesterday, Danielle Antalffy from UBS downgraded RxSight (RXST – Research Report) to a Hold, with a price target of $16.00.
Danielle Antalffy has given her Hold rating due to a combination of factors impacting RxSight’s market position and financial outlook. The company’s near-term sales growth projections have been revised downward, with a two-year compound annual growth rate now expected at 15%, compared to the previous estimate of 21%. This adjustment is coupled with a longer timeline to profitability, which is now anticipated after 2029.
Additionally, there is limited clarity on when macroeconomic pressures affecting the premium intraocular lens market will ease, which has been a barrier to broader adoption of RxSight’s Light Adjustable Lens (LAL) technology. The recent sales miss in the first quarter of 2025 and a reduction in guidance for the year have further clouded the growth outlook, raising concerns about market penetration. Despite the potential for above-market growth, the company faces challenges in margin expansion, and its current valuation is seen as fair, trading at approximately three times its projected 2026 sales.
Antalffy covers the Healthcare sector, focusing on stocks such as Inspire Medical Systems, Abbott Laboratories, and Atricure. According to TipRanks, Antalffy has an average return of 2.3% and a 50.68% success rate on recommended stocks.
In another report released on April 7, Wells Fargo also maintained a Hold rating on the stock with a $17.00 price target.