Stifel upgraded Sight Sciences (NASDAQ:SGHT) to “buy” from “ hold” and raised its price target to $15 from $10 after a survey of 41 minimally invasive glaucoma surgery (MIGS)-trained ophthalmologists “gives us increased confidence in the company posting upside to estimates in 2023.” The stock closed at $11.82 on Jan 5.
Analyst Thomas Stephan writes that the upgrade reflects a “more favorable view on the stock’s near-to-intermediate term setup, compared with the long-term (we do remain skeptical of the standalone opportunity and concerned about more disruptive future competition like iDose).”
Mr. Stephan said OMNI procedure growth expectations are solid, aided by likely-easing competitive pressures and minimal impact from canaloplasty reimbursement reductions.
“Our SION diligence came back even more positive: adoption intentions appear strong, utilization expectations are high, and the device seemingly complements OMNI well,” he added.
Mr. Stephan acknowledged that trying to play near-term MIGS market share prognosticator is especially difficult, but “we feel comfortable doing so in the backdrop of a softer competitive landscape for at least the next six months.”
