Needham ups RxSight target to $66, adds to Conviction List

Needham raised the firm’s price target on RxSight (RXST) to $66 from $54 and keeps a Buy rating on the shares. The firm also added the shares to its Conviction List, replacing Alphatec (ATEC). The analyst sees 13% upside potential to RxSight’s 2025 revenue estimates, driven by further penetration and utilization across new and existing active doctors. Needham’s analysis suggests reaching scaled margins is now more a matter of mix. It believes RxSight can continue to beat and raise on revenue and gross margins with a path to 2025 free cash flow breakeven. RXST is still in the early innings of U.S. penetration, the analyst tells investors in a research note.