Analyst Kevin Caliendo cut his price target on the Nashville company to $9 from $18. The company, which provides patients with teeth aligners, went public in 2019 at $23.
In a note to investors Caliendo said the company's economic model and high customer-acquisition cost don’t suggest a clear path to profitability.
"We view management's renewed focus on profitability and customer quality as necessary steps," he said, "but ... there is more pressure on management to execute, as investors will not reward growth at the expense of margin given the financial performance of the company since its IPO."
The analyst also cited "execution concerns" evident in the company's fourth-quarter-earnings miss.
Last week, the shares took a hit after the company missed Wall Street's fourth-quarter expectations, while analysts slashed their price targets.
The company reported a net loss of 25 cents a share. Analysts polled by FactSet were calling for a loss of 11 cents a share.
The company reported revenue of $197 million, up 53% from a year ago but short of analysts' expectations of $199.9 million.
JPMorgan analyst Robbie Marcus slashed his price target to $16 from $31 while affirming an overweight rating, citing the company's "disappointing" results.
At last check SmileDirect shares were off 1.5% at $7.37. In 2020 through Friday the stock was down 14%. And it was down almost two-thirds from its 52-week high above $21, set in mid-September.