RxSight: Stifel lowers PT to $8 from $9, maintains Hold rating.

RxSight: Stifel lowers PT to $8 from $9, maintains Hold rating.

Stifel Financial has reduced its price target for RxSight (NASDAQ: RXST) from $9.00 to $8.00, while maintaining its Hold rating on the stock. This move comes following the company's mixed second-quarter (Q2) 2025 financial results, which saw GAAP revenue fall short of analyst expectations and a significant improvement in profitability metrics [1].

Despite a 4% year-over-year decline in total GAAP revenue to $33.6 million, RxSight reported a non-GAAP adjusted net loss per share of $0.08, which exceeded the consensus estimate of $0.25. This quarter saw a 13% increase in Light Adjustable Lens (LAL) procedure volume and an improvement in GAAP gross margin to 74.9% from 69.5% in Q2 2024. However, the company's GAAP net loss widened to $11.8 million, up from $6.1 million in Q2 2024, due to rising expenses [1].

Stifel's decision to lower its price target reflects concerns about the company's ability to manage operating expenses and the potential challenges in capital system placements. The analyst firm noted that RxSight's strategy to expand the installed base of Light Delivery Devices (LDDs) and increase the utilization of LALs in ophthalmic practices is promising, but the current financial performance indicates a need for better cost management [1].

Investors should closely monitor RxSight's progress in these areas, as well as the pace of new LDD installations and the trajectory of operating expenses relative to gross profit. The company's full-year 2025 guidance remains unchanged, with annual revenue projected to decline by 7% to 14% versus the prior year and GAAP gross margin expected to fall between 72% and 74% [1].

References:

[1] https://www.aol.com/finance/rxsight-rxst-q2-loss-beats-222353769.html
[2] https://www.investing.com/news/analyst-ratings/stifel-maintains-hold-rating-on-snap-stock-keeps-8-price-target-93CH-4172768