RxSight (RXST) has upside potential if it executes salesforce expansion and utilization-growth initiatives under new leadership, but the company faces structural barriers and competitive headwinds, Bank of America Securities said in a Tuesday research report.
RxSight sees an opportunity to use education on Light Adjustable Lens outcomes versus multifocals, patient selection and workflow best practices to increase utilization.
However, BofA's physician checks suggest that competitive innovation in intraocular lenses, the cost of the Light Adjustable Lens and required follow-up visits are barriers to broader use, analysts wrote.
One cataract surgeon told BofA that time-consuming post-operative visits are a key barrier and can be financially unattractive for practices.
The surgeon said Light Adjustable Lens use must be capped because higher volumes require more optometrist resources and can reduce time available for other revenue-generating appointments.
The brokerage reiterated its Underperform rating on the stock and cut its price target to $5.50 per share from $6.50, citing what it views as structural headwinds to utilization growth.
Price: 4.90, Change: -0.03, Percent Change: -0.61
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