Wall Street is overwhelmingly bullish on SmileDirectClub even after it had the worst US IPO in 12 years. Here's what analysts are saying.
- On Monday, a slew of Wall Street analysts initiated coverage of SmileDirectClub with bullish "buy" ratings and high price targets.
- Shares gained on the news in early trading Monday, then lost as much as 5.71%.
- The coverage comes after a rough start to the company's public trading in September and a report that came out Friday from short-seller Hindenburg Research.
- Here's what Wall Street analysts are saying about the company.
- Watch SmileDirectClub trade live on Markets Insider.
Wall Street analysts are bullish on SmileDirectClub, even after the company's IPO in September was the worst debut in 12 years for a US firm.
On Monday, ten firms initiated coverage with a "buy" or equivalent rating, according to Bloomberg data. Price targets range from $18 to $31, and the average of $21.78 is 43% higher than where shares are currently trading.Shares of the remote-dental-services provider initially gained as much as 2.92% in early trading, then lost as much as 5.71% on the news.
The multiple positive ratings also came after a scathing report was released Friday from Hindenburg Research. The firm said it sees an 85% downside for the company's stock and slapped it with a price target of $2.
Wall Street analysts have a rosier view. They cited the company's large addressable market for people with malocclusion, or crooked teeth.
But an ever-growing competitive landscape, regulatory concerns, and customer complaints pose downside risks, they added.
Here's a roundup of what some analysts who initiated coverage of SmileDirectClub are saying about the company.