Sight Sciences downgraded to Hold from Buy at Lake Street

Lake Street downgraded Sight Sciences (SGHT) to Hold from Buy with a price target of $5, down from $10, after CMS did not confirm device-intensive reimbursement for canaloplasty in the ASC setting with the finalized outpatient prospective payment systems, or OPPS. The outcome is essentially stable reimbursement for Sight’s OMNI in 2025 and while the firm would typically characterize stable reimbursement “as a win,” it notes that a device-intensive designation would have leveled the playing field versus other MIGS economics and afforded Sight some price taking opportunity. While the firm thinks OMNI is the best option for patients, it now thinks it is going to be more challenging for Sight to take market share and increase average selling prices, which it notes had been “an important contributor to our prior Buy rating.”