In a report released yesterday, Young Li from Jefferies maintained a Buy rating on RxSight (RXST – Research Report), with a price target of $50.00.
Young Li’s rating is based on several compelling factors that suggest a promising outlook for RxSight. Firstly, the adoption of RxSight’s Light Adjustable Lens (LAL) and Light Delivery Device (LDD) is still in its early stages in the U.S., with significant potential for growth. The company has successfully trained a substantial number of ophthalmologists and is focusing on expanding its reach by involving optometrists, which could significantly increase the adoption rate.
Additionally, RxSight is not facing resistance on its premium pricing, as the value and differentiation of its products justify the cost. The competitive landscape appears favorable, with no significant competition expected to emerge in the next five years. Furthermore, the company’s gross margins are expected to improve due to a favorable product mix shift towards higher-margin LALs. Lastly, RxSight’s valuation is attractive, trading at a discount compared to its high-growth peers, despite its superior growth prospects. These factors collectively underpin Young Li’s Buy rating for RxSight.
In another report released on February 27, Morgan Stanley also maintained a Buy rating on the stock with a $42.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RXST in relation to earlier this year.
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