Wells Fargo upgrades RxSight on ‘strong first-mover advantage’

Wells Fargo upgraded RxSight (RXST) to Overweight from Equal Weight with a price target of $25, up from $17. The firm sees an attractive valuation at the current levels. The stock “deeply discounts” RxSight’s “differentiated” technology and incremental total addressable market opportunities, the analyst tells investors in a research note. Wells says the market is moving to light adjustable lenses and that RxSight “has a strong first-mover advantage.” The large market players have indicated that they plan to enter the adjustable intraocular lens market, but development timelines for adjustable IOLs are very long, contends the firm. It estimates it took RxSight 10-plus years to bring its light adjustable lens to market in the U.S., and believes it will be years before other players enter the U.S. market.