Sight Sciences' Near-Term Upside Is Limited, Says This Analyst

  • Needham initiated coverage on Sight Sciences Inc SGHT with a Hold rating and no price target.
  • The analyst warns that the recent competitive launches in the minimally invasive glaucoma surgery (MIGS) market will be a headwind to Sight Sciences' revenue growth and limit the stock's near-term upside. 
  • SGHT's OMNI system, which generated 95% of 2021 sales, is used to treat glaucoma by targeting the drainage channels in the eye. Needham believes most OMNI procedures are for mild- to moderate-glaucoma patients, which is estimated currently as a ~$350 million market. 
  • Related: Sight Sciences Posts Long-Term Safety, Effectiveness Data For Glaucoma Surgical System.
  • The analyst expects continuous adoption and utilization of OMNI to be the primary revenue growth driver in the near- to intermediate-term. Needham expects the recently launched SION goniotomy device to build momentum through 2023 but thinks it could potentially cannibalize OMNI volume.
  • Sight Sciences' Dry Eye business addresses a large total addressable market and could become a significant revenue growth driver. Still, its market development will require time and further investment, Needham analyst writes.
  • Price Action: SGHT shares are up 7.08% at $6.89 on the last check Tuesday.
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