SmileDirectClub tumbles as JPM cuts to "underweight" after weak report
10/08/2021 12:05
** SmileDirectClub SDC.O down 16% at $5.63, lowest level
since Apr 2020, as JP Morgan downgrades direct-to-consumer teeth
alignment co to "underweight" after weak qtrly results and
outlook
** SDC late Mon said Q2 results fell short of expectations
due to an April cyberattack and lingering effects of the
COVID-19 pandemic urn:newsml:reuters.com:*:nL1N2PG204
** Co's 2021 revenue forecast of $750-$800 mln was well
below consensus view of ~$834 mln
** JP Morgan says without any concrete metrics that trends
are moving in the right direction, expects SDC to end up at
lower end of the revenue guide, especially as competitors
continued to post strong results
** JPM slashes PT to $6 from $10
** Jefferies cuts its PT to $7 from $9, saying it struggles
to see catalysts for multiple expansion without greater
conviction in near-term revenues and margins
** Now, 5 of 12 analysts rate SDC "buy" or stronger, 4 have
"hold" and 3 say "sell"; median PT is $9 (Refinitiv data)
** SDC shares have fallen ~44% through Mon close
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))