BTIG Analyst Raises Price Target for Rxsight by 18% Amidst Outstanding Q1 Earnings

BTIG's Ryan Zimmerman raised their price target on Rxsight (NASDAQ: RXST) by 18% from $61 to $72 on 2024/05/07. The analyst maintained their Strong Buy rating on the stock.

Zimmerman's updated price target comes after an assessment of Rxsight's first-quarter 2024 earnings report, which was released on May 6, 2024. In their analysis, Zimmerman highlighted Rxsight's impressive utilization metrics and record-high 70.1% gross margin as key factors contributing to the company's outstanding performance. The analyst also noted that Rxsight's guidance hike for the rest of the year can be achieved considering the slight uptick in usage expected.

In the first quarter of 2024, Rxsight reported a loss per share of $0.1, an improvement from the $(0.31) loss per share in Q1 2023. The company's revenue for the quarter stood at $29.5 million, beating the consensus estimate of $27.56 million by 68.6%. This also marked a significant increase from the $17.5 million in revenue reported in Q1 2023. Rxsight's gross margin for Q1 2024 reached 70%, up from 59% in the same quarter the previous year. However, operating expenses increased by 34% year-over-year, totaling $31.4 million.

Looking ahead, Rxsight's management has provided guidance for the full fiscal year 2024. They anticipate revenue in the range of $132 million to $137 million, representing a growth rate of 48% to 54% compared to the previous fiscal year. The company also expects a gross margin of 68% to 70% for the year, an increase of 800 to 1,000 basis points from their previous guidance. Operating expenses are projected to be in the range of $126 million to $130 million, reflecting a 21% to 25% increase.

President and CEO of Rxsight, Ron Kurtz, expressed satisfaction with the strong start to the year, attributing it to the continued adoption of their Light Adjustable Lens (LAL) technology. Kurtz believes that the growing number of doctors and practices offering LAL, along with increasing patient interest, will establish a new standard for premium Intraocular Lens (IOL) offerings in the United States.

In addition to Zimmerman's update, other analysts have also revised their price targets for Rxsight. Larry Biegelsen from Wells Fargo raised their price target by 11.5% from $61 to $68 while maintaining a Strong Buy rating on the stock. Steven Lichtman from Oppenheimer increased their price target by 18% from $61 to $72 and maintained a Buy rating. David Saxon of Needham raised their price target by 17.2% from $64 to $75 and also maintained a Buy rating. It is worth noting that all top-rated analysts currently rate RXST as either a Strong Buy or Buy, with no Hold or Sell recommendations.

Since the release of Rxsight's latest quarterly report on May 6, 2024, the stock price has experienced a 1% decline. However, year-over-year, the stock has seen an impressive increase of 220.4%. During this period, Rxsight has outperformed the broader market, with the S&P 500 posting a gain of 25.4%.

Ryan Zimmerman, the BTIG analyst who updated the price target for Rxsight, is ranked in the top 6% of Wall Street analysts by WallStreetZen. With an average return of 17.4% and a win rate of 54.2%, Zimmerman specializes in the Healthcare sector.

Rxsight Incorporated is an ophthalmic technology company based in Aliso Viejo, CA. They focus on developing Light Adjustable Intraocular Lenses (LAL) used in cataract surgery. The company's FDA-approved RxSight Light Adjustable Lens system is the first and only commercially available intraocular lens technology that allows doctors to customize and optimize visual acuity for patients after cataract surgery. Established in 1997, Rxsight continues to make strides in the ophthalmic industry with their innovative solutions.

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