Oppenheimer downgrades RxSight to Perform after preannounced Q2 sales, guidance

As previously reported, Oppenheimer downgraded RxSight (RXST) to Perform from Outperform and removed the firm’s $28 price target Oppenheimer notes that the company’s pre-announced Q2 sales of $33.6M missed its/Street’s $39.6M/$39.8M forecast, driven by significantly lower than expected LDD placements. Utilization of already installed LDDs also slightly trailed Oppenheimer’s thinking, and 2025 sales guidance was cut to $120M-$130M from $160M-$175M, implying further reduced utilization in the second half of the year. The firm believes there is additional conservatism in the updated guidance and the shares post-market suggest a depressed 1-time EV/sales multiple. However, visibility has now been meaningfully reduced, particularly with new system demand well below expectations and as RxSight’s new initiatives don’t seem to be quick fixes, Oppenheimer adds.