SmileDirectClub upgraded to hold at Craig-Hallum on cost reduction plan
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Craig-Hallum has upgraded shares of SmileDirectClub (NASDAQ:SDC) from sell to neutral citing a recent cost reduction plan and stock price fall.
The firm has a $3 price target (~51% upside based on yesterday's close).
Analyst Alexander Nowak writes that with the cost cutting measures being implemented, the risk of near-term downside is more limited.

Over the last month, shares have fallen 30%.
Despite the upgrade, Nowark notes that Smile Direct is not out of the woods yet.
"The $120M reduction in costs for 2022 will not eliminate the need for a capital raise (we assume $800M vs. $1B previously)," he writes. "The headwinds plaguing the company's growth prospects still exist and cost reductions likely bring more growth pains near-term."
Last year, rival Align (NASDAQ:ALGN) outperformed SmileDirectClub.