RxSight (RXST) Stock Forecast & Price Target

RxSight is viewed favorably because its differentiated light adjustable lens technology is being validated by the ALC collaboration, which brings $60M upfront plus up to $140M in milestone payments and a 30% royalty on collaboration net sales, highlighting meaningful external endorsement of the platform. Despite 1Q26 revenue of $30.9M being down 19% year over year, the company still beat consensus, maintained 2026 revenue guidance of $120M-$135M, and posted strong gross margin of 76.1%, showing resilience in a difficult demand backdrop. The bullish case rests on utilization recovery and improving mix, with 27,472 LALs sold, roughly 10%-11% premium-category share, and expectations that cash burn will improve as LALs become a larger share of revenue.

RxSight is facing fundamental weakness because 2Q26 underlying revenue of $27M came in below consensus, LAL sales of 24,917 and LDD placements of 12 implied softer utilization of 7.2 versus 8.1 expected, signaling weaker adoption of its capital-intensive model. The company also cut 2026 revenue guidance to $140-160M from $120-135M on an underlying basis, while keeping operating expenses at the high end of $150-160M, which points to limited operating leverage and persistent EPS losses of ($1.39) in 2026 and ($1.43) in 2027. Competition and execution risk remain elevated as management cited competitive trialing, likely from JNJ's PureSee, and the need for an incremental piece of capital equipment raises the risk of slower adoption, margin pressure, and potential dilution despite $209M in cash and investments.