RxSight double downgraded to Underperform at BofA after FY25 guidance cut

As previously reported, BofA downgraded RxSight (RXST) to Underperform from Buy with a price target of $22, down from $36, after the company pre-announced a 5% Q1 revenue miss and lowered 2025 revenue guidance by 12% at the midpoint. Management had expected more seasonality in Q1, but the 6% sequential decline was much worse than the 1% the Street was modeling, says the analyst, who adds that the lower guidance implies decelerating growth for the rest of the year and raises several questions. Given the slowing growth and a lack of conviction that there is upside to numbers the firm expects the stock to be a relative underperformer and thinks RxSight likely needs multiple quarters of reaccelerating top-line growth to restore investor confidence.