Citi analyst Joanne Wuensch has maintained their neutral stance on SGHT stock, giving a Hold rating on November 8.
Joanne Wuensch has given her Hold rating due to a combination of factors impacting Sight Sciences’s financial standing. The decision was primarily influenced by the third quarter results of 2023, and the management’s withdrawal of the 2023 guidance, which has led to a significant increase in reimbursement uncertainty. This, in turn, has necessitated a revision of Citi’s financial model for the company, factoring in the possibility of other CMS MACs following WPS’s lead in finding Omni investigational. Consequently, Wuensch has lowered the revenue projections for FY23E, FY24E, and FY25E, and increased the estimated EPS loss.
The lowered price target, now set to $1.80 from $4.00, further reflects an EV/Revenue multiple and a DCF. The EV/Revenue multiple has been reduced from a range of 1.0-2.0x down to 0.5x-1.0x. The DCF, on the other hand, is now at $0.47, assuming a 10-year revenue CAGR of 5%, a WACC of 8.7%, and a terminal growth rate of 5%. These adjustments take into account the potential impacts of CMS reimbursement pressures on the remaining MACs and private insurance, as well as the company’s announced efforts to implement savings through workforce reductions and other SG&A savings.
In another report released on November 8, Morgan Stanley also maintained a Hold rating on the stock with a $3.00 price target.
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Sight Sciences (SGHT) Company Description:
Sight Sciences Inc is a growth-stage medical device company transforming the two fastest growing segments in ophthalmology and optometry, glaucoma and dry eye disease. The company’s product portfolio features the OMNI Surgical System, a dually-indicated device that facilitates the performance of both trabeculotomy and viscoelastic delivery. The company’s non-surgical product portfolio consists of TearCare system which is commercially available for both ophthalmologists and optometrists.
Read More on SGHT:
- Sight Sciences Reports Third Quarter 2023 Financial Results and Withdraws Guidance for Full Year 2023
- Disaster for Sight Services (NASDAQ:SGHT): Shares Fall on Medicare Concerns
- Piper says WPS update ‘massive blow’ to Sight Sciences, good news for Glaukos
- Sight Sciences Announces Presentation of Successful Phase I Results of the SAHARA Randomized Controlled Clinical Trial Comparing TearCare® to Restasis® for the Treatment of Dry Eye Disease at the American Academy of Optometry Annual Meeting
- Sight Sciences Announces New, Large-Scale MIGS Data from 41st Congress of ESCRS Demonstrating TCOR™ Using OMNI® Surgical System Technology is Effective at Lowering Both IOP and IOP Reducing Medications at 2 Years in Patients with Glaucoma
