RxSight, Inc. (NASDAQ:RXST) Analysts Are Pretty Bullish On The Stock After Recent Results

RxSight, Inc. (NASDAQ:RXST) just released its latest quarterly results and things are looking bullish. Revenues beat expectations coming in atUS$30m, ahead of estimates by 7.1%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.25 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for RxSight

Following the latest results, RxSight's seven analysts are now forecasting revenues of US$135.1m in 2024. This would be a substantial 34% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 31% to US$0.82. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$131.6m and losses of US$0.98 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a cut to loss per share in particular.

The consensus price target rose 16% to US$72.43, with the analysts encouraged by the higher revenue and lower forecast losses for next year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on RxSight, with the most bullish analyst valuing it at US$75.00 and the most bearish at US$68.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that RxSight's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 47% growth on an annualised basis. This is compared to a historical growth rate of 60% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% annually. Even after the forecast slowdown in growth, it seems obvious that RxSight is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for RxSight going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for RxSight that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.