SmileDirectClub should consider pre-announcing Q3 results, says Guggenheim
Guggenheim analyst Glen Santangelo noted that 36 state dental boards have filed some complaint against the practice of teledentistry, so California's AB1519 is "not a new issue" for SmileDirectClub. However, the signing of the new bill into law has aggravated regulatory uncertainty and added to pre-existing near-term concerns about revenues, Santangelo said. Given his view that Q3 results and guidance will be positive data points, and his belief that management's reiteration of its view that the recent legislation passed in California will not disrupt its business model would help alleviate some concerns, Santangelo thinks management should consider pre-announcing Q3 results , though he has "no indication that the company will consider going down this route." Santangelo keeps a Buy rating with a $24 price target on SmileDirectClub shares, though he expects the stock "to languish until the company discloses revenues and reiterates its position on the regulatory uncertainty in a more convincing way."