Rxsight's Stellar Q1 2024 Performance Prompts Analysts to Raise Price Targets

Wells Fargo's Larry Biegelsen raised their price target on Rxsight (NASDAQ: RXST) by 11.5% from $61 to $68 on 2024/05/07. The analyst maintained their Strong Buy rating on the stock.

Rxsight, an ophthalmic technology company specializing in light adjustable intraocular lenses (LAL) used in cataract surgery, recently released their Q1 2024 financial results, exceeding expectations. Analyst Larry Biegelsen summarized the company's performance, stating that Rxsight delivered revenue and gross margin beats. The Q1 2024 report showcased a loss per share of $0.1, an improvement from Q1 2023's $(0.31). Additionally, Rxsight reported revenue of $29.5 million, surpassing the consensus estimate of $27.56 million. This represents a substantial increase of 68.6% compared to Q1 2023's revenue of $17.5 million.

One of the key highlights of Rxsight's Q1 2024 report was the significant improvement in gross margin. The company achieved a gross margin of 70%, a notable increase from the 59% reported in Q1 2023. This robust performance contributed to the upward revision of Rxsight's 2024 gross margin guidance. The management now expects a gross margin of 68% to 70%, representing an increase of 800 basis points to 1,000 basis points compared to the previous guidance of 65% to 67%.

In terms of operating expenses, Rxsight reported $31.4 million for Q1 2024, indicating a 34% year-over-year increase. Looking ahead, the company's management has guided for operating expenses of $126 million to $130 million for FY 2024, representing a growth of 21% to 25% compared to the previous guidance of $125 million to $128 million.

President & CEO Ron Kurtz expressed satisfaction with Rxsight's strong start to the year, attributing it to the continued adoption of their Light Adjustable Lens technology. Kurtz stated, "With the growing number of doctors and practices offering the LAL as well as increasing interest among patients, we believe we are establishing a new standard for premium IOL offerings in the U.S."

Following Rxsight's impressive Q1 2024 performance, analyst Larry Biegelsen expressed optimism about the company's prospects for the rest of the year. Biegelsen believes that 2024 will be an excellent year for Rxsight, leading to an increase in their price target from $61 to $68. The analyst maintained their Strong Buy rating on the stock, indicating a high level of confidence in Rxsight's future growth potential.

In addition to Wells Fargo's Larry Biegelsen, other analysts have also updated their ratings and price targets for Rxsight on 2024/05/07. Steven Lichtman from Oppenheimer raised their price target by 18% from $61 to $72 and maintained a Buy rating on the stock. David Saxon from Needham increased their price target by 17.2% from $64 to $75, also maintaining a Buy rating. Ryan Zimmerman from BTIG raised their price target by 18% from $61 to $72 and maintained a Strong Buy rating. These positive rating updates highlight the overall bullish sentiment surrounding Rxsight.

According to WallStreetZen, 100% of the top-rated analysts currently rate RXST as a Strong Buy or Buy. No analysts view the stock as a Hold, and none recommend or strongly recommend selling the stock. This unanimous positive outlook from analysts further reinforces the potential growth prospects for Rxsight.

While Rxsight's stock price has experienced a 1% decline since the release of their latest quarterly report on 2024/05/06, it has still delivered impressive year-over-year growth of 220.4%. In comparison, the S&P 500 has only seen a 25.4% increase during the same period, indicating that Rxsight has outpaced the broader market.

To provide further context, Rxsight Incorporated was founded in 1997 and is headquartered in Aliso Viejo, California. The company specializes in developing the FDA-approved RxSight Light Adjustable Lens system, which allows doctors to customize and optimize visual acuity for patients after cataract surgery. With their innovative technology and strong financial performance, Rxsight is positioning itself as a leader in the ophthalmic technology sector.

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