Adam Maeder, an analyst from Piper Sandler, has initiated a new Hold rating on RxSight (RXST).
Adam Maeder has given his Hold rating due to a combination of factors affecting RxSight’s current market position. Despite the innovative nature of RxSight’s light adjustable lens technology and its presence in the large intraocular lens market, there are concerns about the company’s business visibility and recent competitive developments. The company’s recent financial performance, including a disappointing Q1 pre-announcement and a significant reduction in FY 2025 guidance, has raised questions about its future prospects.
Additionally, the penetration rate for premium intraocular lenses has been stagnant, and the macroeconomic environment is uncertain, potentially influencing patient choices towards more cost-effective options. Competitive pressures are also expected to increase with upcoming product launches from rivals, which could hinder RxSight’s market share growth. While there are positive aspects to RxSight’s story, such as its differentiated technology and improving margin profile, these concerns suggest a cautious approach is warranted.
Maeder covers the Healthcare sector, focusing on stocks such as Inspire Medical Systems, Abbott Laboratories, and Edwards Lifesciences. According to TipRanks, Maeder has an average return of 16.5% and a 56.68% success rate on recommended stocks.
In another report released on April 9, UBS also downgraded the stock to a Hold with a $16.00 price target.