SmileDirectClub may or may not be hurt from AB-1519, says Stifel
The Governor of California on Sunday signed AB-1519, which extends the Dental Board's authority to oversee dental services until 2024, Stifel analyst Jonathan Block tells investors in a research note. The bill includes many amendments including several specific to self-applied orthodontic treatments administered via telehealth, and notes that the Dentist must review diagnostic digital or conventional radiographs for orthodontia prior to moving teeth, adds the analyst. Block says the headwinds the bill may or may not cause for SmileDirectClub's business are "difficult to decipher." He adds, though, that he called out AB-1519 in his initiation report as potentially causing multiple compression in the near-term. The analyst keeps a Buy rating on SmileDirectClub with a $19 price target. The stock in morning trading is down 5%, or 57c, to $10.56.