William Blair has opened coverage on RxSight Inc. (NASDAQ:RXST) and assigned a Market Perform rating, the research house said on Friday. At the time of the note the shares were trading at $8.91 and, according to InvestingPro Fair Value metrics, were deemed undervalued despite a 72.88% decline in the previous 12 months.
Analyst Steven Lichtman framed the company's recent performance in two distinct phases. He noted that RxSight saw robust expansion from 2021 through 2024, driven largely by early adopters of its adjustable intraocular lens (IOL). That momentum, Lichtman wrote, stalled into 2025.
The company reported full-year revenue of $142.09 million, representing 10.75% growth, and delivered a gross profit margin of 74.98%. Despite those metrics, William Blair outlined several headwinds that have weighed on the business.
The research firm identified three principal challenges: rising competitive pressure in the premium IOL market; additional post-operative work that places extra burden on surgeon offices; and what it characterized as insufficient emphasis on resources to support new customers as they ramp procedures. William Blair said management is moving to strengthen customer support and educational efforts in response.
On valuation, William Blair observed that RxSight shares trade at under 1.2x 2026 enterprise value-to-sales, compared with a peer group multiple of 3.6x. The firm said it wants to see sustained improvement in new-customer engagement and procedure ramp dynamics before taking a more favorable view on the shares. RxSight carries a market capitalization of $366.35 million and technical indicators such as the relative strength index (RSI) point to oversold territory, the note added.
For investors seeking deeper analysis, William Blair and the research note were highlighted alongside a comprehensive Pro Research Report and related ProTips available on InvestingPro.
RxSight also disclosed preliminary unaudited results for the fourth quarter of 2025, reporting revenue of approximately $32.6 million. That figure exceeded consensus estimates of $27.6 million by roughly 18%. The company attributed the outperformance to a 10% increase in procedure volume.
Operational detail in the preliminary release showed sales of 28,611 Light Adjustable Lenses and 25 Light Delivery Devices during the quarter, bringing the total installed base of Light Delivery Devices (LDDs) to 1,134.
Market participants responded to the quarter and ongoing competitive questions with mixed but cautious updates. Jefferies raised its price target on RxSight to $11.50 from $11.00 while keeping a Hold rating. Stifel reiterated a Hold stance with a $10.00 price target and cited concerns about competition in the U.S. premium IOL market. UBS maintained a Neutral rating and a $8.00 price target, noting that investor conversations at an upcoming conference are likely to center on whether sequential volume gains can be sustained.
In corporate governance news, RxSight has entered a transition agreement with outgoing chief financial officer Shelley Thunen. Under the terms disclosed, Thunen will continue to provide consulting services after her departure. The company said it intends to file the full text of the transition agreements in a future report with the U.S. Securities and Exchange Commission.
William Blair stated it will watch for concrete evidence that newly deployed customer engagement and educational initiatives can produce durable improvements in procedure ramp rates before shifting to a more positive recommendation.