RXST - RxSight: Great Business Model Stretched Valuations

2024-07-10 16:43:45 ET

Summary

• Today, we revisit RxSight, Inc., whose stock has nearly quintupled since the end of 2022.
• The company has a solid business model and loss estimates have come down substantially since we last looked in October of last year.
• That said, the stock trades north of 15 times forward revenues and RxSight likely doesn't reach profitability until FY2027.
• Can the stock continue to head higher given that backdrop? An updated analysis follows below.

Today, we put RxSight, Inc. ( RXST ) in the spotlight again for the first time here in 2024. The stock of this ocular medical device and product concern has more than quadrupled since the end of 2022. Is there still gas to drive this rally, or is profit taking more likely in the months ahead? An analysis follows below....

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