The analysts covering Sight Sciences, Inc. (NASDAQ:SGHT) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. Investors however, have been notably more optimistic about Sight Sciences recently, with the stock price up a worthy 28% to US$2.25 in the past week. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.
After the downgrade, the consensus from Sight Sciences' six analysts is for revenues of US$78m in 2024, which would reflect a discernible 5.7% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$97m of revenue in 2024. The consensus view seems to have become more pessimistic on Sight Sciences, noting the substantial drop in revenue estimates in this update.
Check out our latest analysis for Sight Sciences
The consensus price target fell 44% to US$2.58, with the analysts clearly less optimistic about Sight Sciences' valuation following this update.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.6% by the end of 2024. This indicates a significant reduction from annual growth of 34% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.8% per year. It's pretty clear that Sight Sciences' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Sight Sciences next year. They're also anticipating slower revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Sight Sciences' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Sight Sciences after today.
But wait - there's more! We have estimates for Sight Sciences from its six analysts out until 2025, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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