In a report released today, Larry Biegelsen from Wells Fargo upgraded RxSight (RXST – Research Report) to a Buy, with a price target of $25.00.
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Larry Biegelsen has given his Buy rating due to a combination of factors that highlight RxSight’s promising market position and growth potential. The company has a strong first-mover advantage in the light adjustable lens market, having captured a significant share since its launch in 2019. This advantage is expected to persist as other competitors face lengthy development timelines to enter the market.
Furthermore, RxSight’s technology is particularly well-suited for post-LASIK patients, representing a substantial market opportunity with significant potential sales. The international market also presents a promising avenue for growth, with plans to expand into regions such as the EU, Korea, and the UK, where the market size is notably larger than in the US. Additionally, RxSight’s current valuation appears attractive, trading at a discount compared to peers, despite its strong growth prospects and high gross margins. While competition and consumer confidence pose risks, these factors seem to be already reflected in the stock price.
According to TipRanks, Biegelsen is a 5-star analyst with an average return of 9.6% and a 59.40% success rate. Biegelsen covers the Healthcare sector, focusing on stocks such as Dexcom, Abbott Laboratories, and Insulet.
In another report released on May 8, Needham also reiterated a Buy rating on the stock with a $22.00 price target.