Some Analysts Just Cut Their Sight Sciences, Inc. (NASDAQ:SGHT) Estimates

Market forces rained on the parade of Sight Sciences, Inc. (NASDAQ:SGHT) shareholders today, when the analysts downgraded their forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Investors however, have been notably more optimistic about Sight Sciences recently, with the stock price up a notable 28% to US$2.25 in the past week. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.

Following the downgrade, the consensus from six analysts covering Sight Sciences is for revenues of US$78m in 2024, implying a discernible 5.7% decline in sales compared to the last 12 months. 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.

See 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sight Sciences' past performance and to peers in the same industry. 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 most important thing to take away is that analysts cut their revenue estimates for next year. They also expect company revenue to perform worse than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Sight Sciences after today.

Hungry for more information? At least one of Sight Sciences' six analysts has provided estimates out to 2025, which can be seen for 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.