Transparent mouthguards and braces manufacturer SmileDirectClub has had worst IPO since 2007 of the year. Shares placed 11 September to $23 and fell on 36%. But analysts are not discouraged. Yesterday ended the "quiet period" and analysts of investment banks had the opportunity to express their opinion about the company and make a recommendation on the paper. 10 from 10 Analysts, started to cover the company's shares, rated “buy”. Average target price $22.
? An analyst at Bank of America believes, that the company is now trading at a low multiple for such fast-growing companies - total 4,5 EV/Sales, taking into account the projected revenue 2021 of the year.
? J.P. Morgan analyst thinks, that SmileDirectClub deserves to bargain with an industry average multiplier of about 7,2 EV/Sales.
? Citi Analyst Says Shares So Strong After IPO Unjustified.
? Credit Suisse analyst thinks, what is already in 2020 year the company is able to go into profit. Sales in the largest American pharmacy chains CVS and Walgreens will become a strong driver. In the meantime, the company has lower multipliers, than the main competitor Align Technology, must be taken.
SmileDirectClub goes to IPO
16 SmileDirectClub applied for an IPO in August. Company, producing invisible teeth straighteners. Will go to the stock exchange Nasdaq under the ticker SDC.
SmileDirectClub is a very interesting startup, recently ranked in $3,2 billion in a closed investment round from Clayton, Dubilier & Rice, Kleiner Perkins и Spark Capital.
SDC, located in Nashville, Tennessee, produces and sells Aligners (transparent braces). Company based on casts, generates 3D images and makes a kit that is sent to your home for $ 1895, which is a very good alternative to Invisaline, which is more than twice as expensive . Also CVS Health and SmileDirectClub in April agreed to place SmileShops in CVS pharmacies, what is a strong sales driver for Smiley.
Thanks to an interesting startup idea, low price of good quality products and excellent partnerships, the future of the company looks very optimistic. According to our assumptions, a startup can get a lot of revenue from 800 million to 1 billion dollars this year.
Total revenue increased by 190% to 423,2 million dollars in 2018 year since 146,0 million dollars in 2017 year. Total revenue for six months by 30 June 2019 of the year, amounted to 373,5 million dollars, increasing by 113% compared to the same period 2018 of the year. Losses in size 74,8 million. Doll. USA and 32,8 million. Doll. US and Adjusted EBITDA of 16,9 million. Doll. USA and 21,1 million. Doll. USA in 2018 And 2017 years respectively. And also a net loss in the amount of 52,9 million. Doll. US and Adjusted EBITDA of 2,3 million. Doll. USA in six months, ended 30 June 2019 of the year.
One of the competitors of SmileDirectClub – Align Technology, after trial, should close all 12 Invisalign stores and get their shares back to SDC at prices 2017 of the year, which is cheaper than their last closed investment round. The growth rate of the company will help it occupy a leading position in the Aligner market, what makes this ipio very attractive.
As you know from sources on the Internet, the main underwriters of this IPO will be JPMorgan and Citigroup , as well as Bank of America, Credit Suisse и Jefferies.
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