RxSight (RXST) Stock Forecast & Price Target

RxSight is positioned favorably because its core light-adjustable lens franchise continues to show commercial traction, with 1Q26 LAL revenue of $27.0M on 27,472 lenses sold, gross margin of 76.1% above consensus, and a premium-category share modeled at roughly 10-11% even as the broader utilization rate softened to 8.1 LALs per LDD. The company also has meaningful fundamental catalysts from the ALC collaboration, which brings a $60M upfront payment plus up to $140M in development and regulatory milestone payments and a potential 30% royalty on net sales, while management’s updated 2026 revenue guidance of $140-160M and gross margin guidance of 73-75% reflect improving economics despite near-term softness. With $209M in cash and investments, a lineup of next-generation lenses expected to launch over the intermediate-term, and the expectation that cash burn improves as LALs become a larger mix of revenue, the business has both financial flexibility and multiple paths to reaccelerate growth.

RxSight is facing a fundamentally challenged setup because even after a revenue beat to $30.9M in 1Q26, sales still fell 19% Y/Y and EPS missed expectations at ($0.38) versus consensus of ($0.30), underscoring that the business remains under pressure despite management’s reiterated 2026 revenue guidance of $120-135M. The weakness in 2Q26 underlying trends and the need to rely on a “steady recovery into 2026” suggest the commercial re-engagement is still early, with only localized encouraging utilization trends rather than broad-based demand strength. Although the collaboration with ALC may highlight the technology’s differentiation, the reliance on faster LDD installed base growth, higher utilization, stronger LAL volumes, and margin improvement shows the investment case still depends on execution that has not yet been proven, leaving the stock vulnerable if growth and profitability fail to inflect as expected.