Analyst slashes SmileDirect target on cost concerns

SmileDirectClub is squaring up to a number of margin pressures in coming quarters, a Loop Capital Markets analyst said Wednesday in significantly cutting her price target for shares of the dental aligner maker.

In a note to investors, Laura Champine said downtown-based SmileDirect is facing inflationary pressures on a number of key items such as shipping and digital marketing as well as general and administrative costs. Those trends come as SmileDirect CEO David Katzman and his team are pushing forward with their plan, announced early last year, to slow growth and emphasize getting to profitability. The company last month also said a cyberattack will cost it about $15 million in sales this quarter.