Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
SmileDirectClub (NASDAQ: SDC) shares are down over 3.8% on Tuesday, trading at $6.24.
The news follows Monday's announcement that the company plans to launch in France at the beginning of the fourth quarter. France will be the seventh European country that SDC has launched in, where it will introduce its clear aligners, whitening system and telehealth platform in its SmileShop in Paris.
Despite the positive update on Monday, the stock was downgraded after the close of trading.
Stifel analyst Jonathan Block downgraded the stock to Hold from Buy, on its growth uncertainty. The analyst set a price target of $7, down from $9, stating that whether it is “going to the moon” or “crashing back to earth,” it faces headwinds.
In a research note, Block said the challenges for the company include losing its market share to DTC players domestically and possibly abroad.
He believes that the competitive landscape will increase further, with DENTSPLY SIRONA anticipated to release Byte out globally in 2022. In addition, Block also said he sees the Teen market initiative to achieve “only modest success” in the next few years.
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .