RxSight, Inc. (NASDAQ:RXST) Just Reported, And Analysts Assigned A US$44.80 Price Target

Shareholders might have noticed that RxSight, Inc. (NASDAQ:RXST) filed its full-year result this time last week. The early response was not positive, with shares down 7.0% to US$28.21 in the past week. Revenues came in at US$140m, in line with forecasts and the company reported a statutory loss of US$0.71 per share, roughly in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on RxSight after the latest results.

See our latest analysis for RxSight

Taking into account the latest results, the consensus forecast from RxSight's ten analysts is for revenues of US$190.1m in 2025. This reflects a substantial 36% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 21% to US$0.53. Before this latest report, the consensus had been expecting revenues of US$189.3m and US$0.53 per share in losses.

The analysts trimmed their valuations, with the average price target falling 14% to US$44.80, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic RxSight analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$33.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that RxSight's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 36% growth on an annualised basis. This is compared to a historical growth rate of 51% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.8% per year. 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 important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 estimates - from multiple RxSight analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign 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.