Sight Sciences Inc. (SGHT) PT Lowered to $3 at Lake Street Capital Markets

Lake Street Capital Markets analyst Frank Takkinen lowered the price target on Sight Sciences Inc. (NASDAQ: SGHT) to $3.00 (from $5.00) while maintaining a Hold rating.

The analyst commented: "In November 2024, five Medicare administrative contractors (MACs) finalized LCDs restricting coverage for glaucoma procedures using multiple MIGS (combination MIGS). As a result, in cases where physicians were previously allowed to bill two MIGS procedures, the physician is required to choose one. This has caused an industry-wide headwind given about 15% of procedures in 2024 were combo-MIGS. We expect the net effect of the combo-MIGS headwinds, offset by HSD market growth, will result in total market share contraction in the
HSD percent range. Eventually, we expect this to subside and for Sight to return to growth, but we think the headwinds will persist through at least 1H. The Company is effectively managing the balance sheet to ensure adequate liquidity to not only weather the storm but also emerge on the other side with ample liquidity to invest and reaccelerate growth. While we believe standalone MIGS and the Dry Eye business have attractive growth opportunities, we remain Hold rated until the primary MIGS+cataract business stabilizes and reimbursement noise subsides. We see limited downside given the current valuation and robust balance sheet. We are reiterating our Hold rating and lowering our PT to $3 to align with the current multiple on shares."

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