NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Align Technology shares target raised on strong Q1 results

EditorNatashya Angelica
Published 04/25/2024, 11:14 AM
ALGN
-

On Thursday, Piper Sandler adjusted its outlook on Align Technology (NASDAQ:ALGN), increasing the stock price target to $375 from $355 while sustaining an Overweight rating on the stock. This adjustment comes in response to Align Technology's robust first-quarter earnings, which surpassed Wall Street's expectations.

Align Technology reported a significant first-quarter beat, with revenue reaching $997 million and earnings per share (EPS) at $2.14, both figures outperforming the Street's projections of $975 million in revenue and an EPS of $1.97. Furthermore, the company's management has provided second-quarter guidance that exceeds analyst expectations and has upgraded its forecast for the full year.

The company's iTero Lumina product has had a successful launch, contributing to the positive performance. Align Technology's management has also reaffirmed their perception of stability within the end-market.

These developments are particularly noteworthy given the mixed performance of other consumer discretionary companies in recent weeks. After the market closed, Align Technology's shares experienced a 5% increase.

The momentum behind Align Technology's stock is attributed to ongoing improvements in the demand for clear aligners and the introduction of new products. These factors are anticipated to continue driving the stock's upward trajectory in the near term.

Piper Sandler's stance is that the stock has the potential for further appreciation throughout the remainder of 2024, supported by sustained enhancements to the profit and loss statement and continued performance above Wall Street's estimates. The revised price target of $375 reflects these higher forward estimates.

InvestingPro Insights

Following Piper Sandler's upbeat revision of Align Technology's (NASDAQ:ALGN) price target, real-time data from InvestingPro provides a deeper financial perspective on the company. Align Technology boasts a market capitalization of $22.91 billion, emphasizing its significant presence in the market.

The company's P/E ratio stands at 51.74, indicating a premium valuation that investors are willing to pay for its earnings, which aligns with the InvestingPro Tip highlighting its high earnings multiple. Additionally, Align Technology has shown a revenue growth of 5.72% over the last twelve months as of Q1 2024, signaling steady business expansion.

InvestingPro Tips further reveal that Align Technology has been actively engaging in share buybacks, a move that often reflects management's confidence in the company's future prospects. Moreover, the company has delivered a strong return over the last three months, with a 19.71% price total return, suggesting a positive short-term investment outlook.

For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available, which can be accessed through the InvestingPro platform using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With the next earnings date set for July 24, 2024, investors will be keen to see if Align Technology can maintain its momentum and continue to exceed analyst expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.