Wells Fargo Raises RxSight Price Target to $10 Amid Analyst Adjustments

Analysts have adjusted their price targets for RxSight, Inc. (NASDAQ: RXST), with Wells Fargo & Company raising its price objective from $9.00 to $10.00. The updated target was announced in a report released on the morning of November 5, 2023. Wells Fargo currently maintains an equal weight rating on the stock, indicating a neutral stance on its performance.

Several other financial institutions have also reassessed their positions on RxSight in recent reports. On the same day, Piper Sandler reduced its target price from $18.00 to $10.00 and assigned a neutral rating. Similarly, BTIG Research reaffirmed a neutral rating, while Bank of America cut its target price from $18.00 to $9.00, assigning an underperform rating. On July 15, 2023, Morgan Stanley downgraded the stock from overweight to equal weight, lowering its target from $20.00 to $9.00. UBS Group also decreased its price objective from $16.00 to $8.00, maintaining a neutral rating.

Currently, one analyst rates RxSight as a Buy, while nine have issued Hold ratings and three have assigned Sell ratings. According to data from MarketBeat, the company’s average rating stands at Reduce, with an average price target of $9.56.

Financial Performance and Analyst Insights

RxSight recently reported its quarterly earnings, revealing an earnings per share (EPS) of ($0.04), surpassing analysts’ expectations of ($0.19) by $0.15. The company generated revenue of $30.34 million for the quarter, significantly exceeding the consensus estimate of $25.63 million. Despite this positive news, RxSight reported a negative net margin of 25.15% and a negative return on equity of 12.78%. This quarterly revenue reflected a decrease of 31.4% compared to the same quarter the previous year.

Looking ahead, RxSight has provided guidance for fiscal year 2025, forecasting an EPS of ($0.70). Analysts predict that the company will continue to face challenges as they anticipate RxSight will post an average EPS of ($0.70) for the current fiscal year.

Institutional Activity and Stock Ownership

Recent trading activity indicates that institutional investors are actively buying and selling shares of RxSight. Notably, Raymond James Financial Inc. acquired a new stake in the company worth $28,000 during the second quarter. Bessemer Group Inc. also established a new position valued at $33,000 in the same period.

Additionally, State of Wyoming increased its holdings in RxSight by 91.5%, now owning 2,062 shares after purchasing an additional 985 shares. CWM LLC expanded its position by an impressive 614.1%, acquiring 4,520 shares for a total value of $59,000. Tower Research Capital LLC also saw a significant increase of 156.2% in its holdings, now owning 5,574 shares valued at $72,000.

Currently, institutional investors and hedge funds own approximately 78.78% of RxSight’s stock, indicating strong institutional interest in the company.

RxSight operates as a commercial-stage medical device company, specializing in the research, development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery both in the United States and internationally. The RxSight system enables healthcare providers to customize and enhance visual acuity for patients post-surgery, positioning the company strategically within the medical device market.

As investors and analysts continue to monitor RxSight’s performance, the company faces a pivotal time ahead as it navigates through market adjustments and financial challenges.