Sight Sciences, Inc. (NASDAQ:SGHT) stock gained Thursday after H.C. Wainwright initiated coverage with a Buy rating and a $14 price forecast.

Analyst Yi Chen sees upside potential from the medical device company's expanding glaucoma and dry eye treatment businesses, supported by improving operating efficiency and broader insurance reimbursement.

The price forecast implies nearly 70% upside from the stock's Oct. 14 closing price of $8.25.

Two Growth Engines Support Bullish Outlook

Chen highlighted Sight Sciences' OMNI glaucoma treatment platform and TearCare dry eye system as key growth drivers.

The analyst expects the recently launched OMNI Ultra platform to improve surgical efficiency and encourage broader physician adoption.

Additionally, Aetna's expanded reimbursement coverage for eligible glaucoma procedures adds approximately 25 million commercially insured members.

The firm projects approximately 5% growth in Sight Sciences' glaucoma business in 2027.

Meanwhile, TearCare offers stronger growth potential as Medicare reimbursement expands.

Second-quarter dry eye revenue surged 703% year over year to $2.7 million. H.C. Wainwright expects the segment to grow approximately 62% in 2027.

Improving Financial Performance

Sight Sciences' second-quarter revenue increased 19.5% year over year to $23.4 million, while operating expenses declined 11% to $25.3 million.

Management also raised its 2026 revenue outlook to $88 million-$92 million, representing approximately 14%-19% growth.

H.C. Wainwright forecasts revenue of $90.1 million in 2026 and $100.2 million in 2027.

The analyst also highlighted a potential financial benefit from the company's patent litigation against Alcon.

An April court judgment awarded Sight Sciences $55.4 million in damages and ongoing royalties tied to Alcon's Hydrus Microstent. However, Alcon has appealed the ruling, leaving the timing and collection of any proceeds uncertain.

Risks Remain

Despite the bullish outlook, Chen cautioned that reimbursement uncertainty, competition and execution risks could weigh on growth. The company's continued losses and cash consumption also remain concerns.

H.C. Wainwright believes sustained revenue growth, disciplined spending and broader adoption of its treatments could strengthen the company's path toward profitability.

SGHT Price Action: Sight Sciences shares were up 7.64% at $8.88 at the time of publication on Thursday, according to market data.