SDC - SmileDirectClub cut to neutral at JPMorgan on weaker guidance

SmileDirectClub ([[SDC]] +0.9%) managed to beat the consensus with its Q1 2021 financials. Noting guidance that lags the expectations, JPMorgan has downgraded the stock to neutral from overweight.The price target of lowered to $10.00 from $14.00 per share implies a premium of ~25.6%.With company projecting a sequential growth of 5 – 7% in Q2, the analysts led by Robbie Marcus argue that the implied sales guidance for 2021 stands below the Street forecast mirroring the impact of the recent cybersecurity incident.Slower than anticipated new aligner growth, and mixed execution coupled with the impact of cybersecurity attack prompt the analysts to expect a limited upside for the stock over the next 12 months compared to the firm’s coverage universe.However, according to William Blair analyst John Kreger who has an outperform rating on the stock the guidance indicates a return to stable top-line growth and signs of margin progression despite production disruption which has

For further details see:

SmileDirectClub cut to neutral at JPMorgan on weaker guidance