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One thing we could say about the analysts on Sight Sciences, Inc. (NASDAQ:SGHT) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Surprisingly the share price has been buoyant, rising 28% to US$2.25 in the past 7 days. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.
Following the downgrade, the consensus from six analysts covering Sight Sciences is for revenues of US$78m in 2024, implying a perceptible 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. It looks like forecasts have become a fair bit less optimistic on Sight Sciences, given the substantial drop in revenue estimates.
See our latest analysis for Sight Sciences
Notably, the analysts have cut their price target 44% to US$2.58, suggesting concerns around Sight Sciences' valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 clear low-light was that analysts slashing their revenue forecasts for Sight Sciences next year. They're also anticipating slower revenue growth 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. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Sight Sciences going forwards.
Unanswered questions? We have estimates for Sight Sciences from its six analysts out until 2025, and you can see them free on our platform here.
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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.