BofA Securities Downgrades Sight Sciences Inc. to Underperform, 'Limited upside potential'

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BofA Securities Downgrades Sight Sciences Inc. to Underperform, 'Limited upside potential'
(Updated - September 13, 2023 6:33 AM EDT)

BofA Securities analyst downgraded Sight Sciences Inc. (SGHT) from Neutral to Underperform with a price target of $4.50 (from $10.00).

The analyst comments "SGHT guided Q3 revenue to $19-20m, 18% below Street consensus ($24m) at the midpoint. The uncertainty from the proposed Medicare coverage changes for SGHT’s surgical glaucoma products (~90% of sales) has negatively impacted ordering activity in Q3. Specifically, SGHT has struggled to add new accounts, and utilization has decreased at existing accounts. We downgrade to Underperform from Neutral as we see limited upside potential to the stock until there is clarity on the finalized local coverage determination (LCD). We think that there is a chance that sales may deteriorate further ahead of final MAC coverage, and we see significant risk to 2024/25 numbers if the proposed LCD is finalized as is. Our price objective (PO) goes to $4.50 (from $10.00),
which is based on 1x our new 2024 sales (down from the prior 4x on 2023 given the uncertainty and risk to out-year estimates)."

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