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SmileDirectClub (SDC) Shares Downgraded On Growth Uncertainty

Updated: 21 Sep 2021

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.

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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.

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