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Fly News Breaks for February 26, 2020
SDC
Feb 26, 2020 | 09:35 EDT
Loop Capital analyst Laura Champine lowered her price target on SmileDirectClub to $15 after its disappointing Q4 earnings and a 40% expected revenue growth in FY20 - below her forecast of 55%. The analyst adds that the management is more conscious of of the "growth pains" experienced in the second half of 2019 and believes that a pause in U.S. store launches is warranted until the company's manufacturing process becomes more reliable. Champine still keeps her Buy rating on the stock longer term, anticipating the company to turn profitable on adjusted EBITDA basis in Q4 and for its margins to ramp up quickly.
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