RxSight Inc. (RXST) PT Raised to $75 at Stifel
Stifel analyst Tom Stephan raised the price target on RxSight Inc. (NASDAQ: RXST) to $75.00 (from $68.00) while maintaining a Buy rating.
The analyst comments "RXST’s 1Q24 results confirmed (and then some) why it has been viewed as one of the best 2024 momentum stories in med-tech. Revenue solidly beat estimates as LAL share gains persist, and management raised FY24 guidance by $3MM at the midpoint--above the $2MM 1Q24 beat. Equally notable in 1Q24 was the gross margin of 70% and (estimated) adjusted EBITDA of - $6MM, which topped our forecasts of 65% and -$8MM, respectively. This--combined with FY24 gross margin guidance rising by 300bps to 68%-70% and FY24 opex only increasing by $1.5MM at the midpoint (below the implied gross profit raise of $6MM)--should effectively fuel the profitability/leverage bull case that has emerged of late. Altogether, the RXST story right now may be uniquely curated to transcend any near-to-intermediate-term valuation bear thesis-- share gain opportunities remain early, numbers are beatable, profitability is already within reach, and now-likely-higher takeout optimism can provide a floor for shares."