Am I engaging in hyperbole by calling it a “disaster” at Sight Services (NASDAQ:SGHT)? Well, when share prices fall over 58% in a day, there are few other words that qualify. That’s what happened to Sight Services as one of its primary tools and revenue drivers just found itself on the bad end of the local coverage determination list for a major Medicare Administrative Contractor.
Sight Services offers what’s known as the OMNI Surgical System, a tool designed to bring down intraocular pressure in adults with glaucoma. That should have put it on the list for the Wisconsin Physicians Services local coverage determination list for what’s known as “micro-invasive glaucoma surgery.” That’s the word from Piper Sandler’s Matt O’Brien.
Unfortunately, the OMNI Surgical System didn’t make the list. Rather, it made a separate list known as the “investigational” list. Without trying to plow through pages of legal jargon, it’s safe to say that this will make it a lot harder for anyone to use the OMNI system and, in turn, for Sight Sciences to make sales.
Is Sight Sciences a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on SGHT stock based on one Buy and four Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average SGHT price target of $5.63 per share implies 285.62% upside potential.
