Lake Street Turns Bullish on Sight Sciences: Analyst Upgrade Signals Major Reversal for Medtech Underdog

Sight Sciences (SGHT), a medtech innovator specializing in minimally invasive devices for the treatment of eye diseases such as glaucoma and dry eye, has just caught the attention of Lake Street Capital. In a notable shift, the analyst firm has upgraded SGHT from Hold to Buy and set a new price target of $5—implying a robust potential upside for investors. For a company operating at the intersection of ophthalmology and disruptive technology, this move could be a watershed moment, especially as the stock trades well below its 52-week highs. Analyst upgrades from reputable firms can often serve as catalysts for underfollowed stocks, and in Sight Sciences’ case, the timing of this call comes just as the company reports resilient Q2 results and hints at operational improvements.

Key Takeaways

• Potential Upside: Lake Street’s $5 target price suggests a potential 35% upside from SGHT’s recent price.

• Stock Price Action: SGHT has seen moderate gains in early trading, recently closing at $3.70—up over 4% from yesterday’s close.

• Financial Update: Q2 results beat revenue estimates and slightly narrowed losses year-over-year, underscoring improving operating efficiency.

• Recent News: The company topped revenue estimates and delivered better-than-expected EPS results, sparking renewed investor attention.

• Analyst Confidence: Lake Street is a respected small-cap specialist known for deep sector expertise, adding credibility to the upgrade.

Why Lake Street’s Upgrade is a Game Changer for Sight Sciences

Sight Sciences is not a household name, but for investors who specialize in emerging medtech, this company has quietly built a suite of FDA-cleared devices targeting large and growing patient populations. Its main products—OMNI Surgical System and TearCare—address the treatment gaps in glaucoma and dry eye, two of the most common causes of preventable vision loss worldwide. With a business model centered on innovative, minimally invasive procedures that can be performed in-office, Sight Sciences is positioned at the forefront of a secular shift in ophthalmology towards less invasive, more cost-effective care.

Analyst Upgrade and Lake Street’s Reputation

Lake Street Capital Markets, a boutique investment bank with a strong track record in small- and micro-cap healthcare, is known for identifying inflection points before the wider market. Their upgrade from Hold to Buy is especially notable because Lake Street analysts are often among the earliest to spot turnarounds in underfollowed medtech names. Their sector focus and reputation for rigorous due diligence lend weight to today’s call.

"Lake Street’s analysts are well-respected for their sector-specific diligence and willingness to step in early on emerging growth names. Their shift to a Buy reflects high conviction on SGHT’s operational improvements and market opportunity." — DeepStreet

SGHT’s Stock and Financial Performance: A Company in Transition

Stock Price Dynamics:

• Over the last year, SGHT’s price has fluctuated between $2.03 (yearly low) and $7.05 (yearly high), with recent volume trending below average as the stock consolidates after a significant pullback.

• Recent technicals show the stock trading just above its 20-day moving averages (EMA: $3.57, SMA: $3.52), with a Relative Strength Index (RSI) of 58—suggesting neutral-to-mildly bullish momentum.

• The average daily trading volume is around 200,800 shares, but yesterday’s volume was notably light—often a sign that larger moves may be brewing as new information hits the market.

Q2 2025 Results—Signs of Operational Progress:

• According to Zacks, SGHT narrowed its Q2 loss to $0.23 per share (better than the consensus estimate and an improvement from last year’s $0.25 loss), while topping revenue expectations.

• The earnings call transcript highlights management’s focus on cost controls, salesforce optimization, and renewed traction in both core product lines.

• Investors should note that while SGHT is not yet profitable, the company’s improving loss trajectory and revenue beats could mark a bottoming process for the stock.

The Math: Quantifying the Potential Upside

With Lake Street’s new target of $5 and SGHT’s recent price at $3.70, the implied upside is approximately 35%—a substantial premium for a small-cap in a consolidating sector. This target sits above both the 20-day and 50-day moving averages, suggesting the analyst sees meaningful fundamental or market catalysts that could re-rate the stock higher.

What’s Driving Analyst Optimism?

• Revenue beats and narrowing losses point to improved execution.

• Technical stabilization after a long downtrend sets the stage for a potential reversal.

• Sector tailwinds in ophthalmology and minimally invasive devices remain strong.

Recent News and Investor Sentiment

• August 7, 2025: Zacks reported that SGHT not only topped revenue estimates but also beat on the bottom line, narrowing Q2 losses more than expected (Zacks).

• Market Reaction: The stock climbed over 4% in early trading following the news, hinting that investors may be starting to buy the turnaround thesis.

What’s Next for SGHT Investors?

Risks and Considerations

• Profitability Timeline: SGHT remains unprofitable, and any delays in achieving positive cash flow could pressure the stock.

• Adoption Curve: Success depends on accelerating adoption of OMNI and TearCare in a competitive field.

• Small-Cap Volatility: The stock’s low average volume and history of large swings mean it may remain volatile, particularly around earnings and news events.

Bullish Catalysts

• Continued Revenue Beats: As SGHT continues to exceed expectations, institutional interest could rise.

• Strategic Updates: Any updates on new product launches or expanded indications could further drive sentiment.

• Sector M&A: With larger medtech firms hungry for growth, SGHT’s assets could make it a potential acquisition target if execution continues to improve.

Summary: Why This Upgrade Matters

Lake Street’s upgrade is more than just a vote of confidence—it signals that a highly specialized analyst sees operational improvements, sector tailwinds, and an attractive entry point for investors. With a 35% potential upside to the new target price, SGHT is now squarely on the radar for medtech-focused investors looking for asymmetric return opportunities. While risks remain, the improving fundamentals and analyst conviction suggest this may be an inflection point for the stock.

For those willing to stomach small-cap volatility, Sight Sciences offers a compelling risk/reward profile—backed by a credible analyst call and strengthening financials.