RxSight’s Hold Rating: Balancing Strong Gross Margins and Macroeconomic Pressures with Promising Business Models

RxSight (RXST – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Larry Biegelsen from Wells Fargo maintained a Hold rating on the stock and has a $17.00 price target.

Larry Biegelsen has given his Hold rating due to a combination of factors including RxSight’s recent financial performance and future guidance. The company reported first-quarter sales that aligned with its pre-announcement, maintaining its sales, gross margin, and operating expense guidance for 2025. Despite a strong gross margin performance exceeding expectations, operating expenses were higher than anticipated, and the net loss per share was in line with estimates but better than consensus.
Additionally, while RxSight reiterated its sales guidance for 2025, indicating potential growth in the latter half of the year, the company is still facing macroeconomic pressures that are expected to persist into the second quarter. Although there are signs of stabilization, the overall outlook remains cautious. The introduction of new business models, such as third-party centers, shows promise for broader adoption, yet the overall impact on the company’s financials remains to be seen. These factors contribute to the Hold rating, reflecting a balanced view of potential opportunities and ongoing challenges.

According to TipRanks, Biegelsen is a 5-star analyst with an average return of 9.3% and a 58.40% success rate. Biegelsen covers the Healthcare sector, focusing on stocks such as Dexcom, Abbott Laboratories, and Johnson & Johnson.