On Thursday, Piper Sandler affirmed its confidence in Align (NASDAQ:ALGN) Technology, maintaining an Overweight rating and a steady price target of $330.00 for the NASDAQ-listed company.
The endorsement follows a review of orthodontic data for June, sourced from several hundred practices across the United States, which revealed that clear aligner volumes remain largely unchanged year-over-year when adjusted for selling day differences. Teen aligner sales continue to outpace those for adults.
The analyst noted that despite a stable performance in clear aligner volumes throughout much of 2024, Align Technology 's shares have not seen corresponding support. Investor concerns have lingered around the pace of recovery and possible risks to the 2024 U.S. aligner volume projections set by analysts.
However, the comprehensive financial outlook for Align Technology in 2024 appears less risky, bolstered by positive feedback on the iTero imaging system and satisfactory profit margins.
The report suggests that the likelihood of Align Technology falling short of expectations in the second quarter's headline results or updated guidance commentary is minimal. This assessment is based on the current expectations of investors. The analyst anticipates that the company's stock could see a positive response if the upcoming quarterly results align with the existing guidance, without any negative revisions.
To reiterate, Piper Sandler's stance on Align Technology is anchored by the stability in clear aligner sales, particularly among teens, and a solid financial foundation that mitigates the risk of underperformance in the near term. The firm's unchanged price target of $330 reflects this optimism for the stock's potential.
In other recent news, Align Technology has been the subject of several major developments. The company reported a 5.8% year-over-year increase in total worldwide revenues for the first quarter of 2024, amounting to $997.4 million. This growth was primarily driven by the Clear Aligner and Systems and Services segments.
Align Technology also announced the acquisition of Cubicure and the launch of new products like the iTero Lumina intraoral scanner and the Invisalign Palatal Expander system.
Stifel maintained its Buy rating on Align Technology stock, while Evercore ISI adjusted its outlook, reducing the price target to $300 from the previous $370, but maintaining an Outperform rating. Piper Sandler also maintained an Overweight rating and a $375.00 price target for Align Technology's shares, highlighting the company's stable market environment.
These recent developments show Align Technology's commitment to growth and innovation, with projected revenue growth of 6% to 8% for fiscal 2024 as indicated by the company. The analysts' analysis from firms like Stifel, Evercore ISI, and Piper Sandler underline the importance of worldwide consumer confidence levels and the company's ability to execute in a stable worldwide environment for Align Technology's performance.
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