Align Technology stock price target lowered to $200 by Stifel

Investing.com - Stifel has lowered its price target on Align Technology (NASDAQ:ALGN) to $200.00 from $275.00 while maintaining a Buy rating on the stock. The dental technology company, currently valued at $14.76 billion, trades at a P/E ratio of 37.14, reflecting its premium market position. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.

The price target reduction follows disappointing quarterly results, with Align missing revenue, Invisalign case volume, and earnings per share expectations. Stifel noted that case volume trends weakened in June, with high consumer interest but poor conversion rates. Despite these challenges, the company maintains a strong gross margin of 70.02% and has received a "GOOD" overall financial health score from InvestingPro, which offers 7 additional key insights about ALGN’s performance.

Align Technology has also reduced its 2025 revenue guidance, though its operating margin forecast remains unchanged. Despite the revenue adjustment, Stifel’s 2025 EPS estimate is only approximately 5% lower.

The stock experienced a significant 35% drop following the earnings announcement, which Stifel characterized as "massive multiple compression off an already pressured multiple."

For 2026, Align management has indicated expectations of more than 100 basis points of operating margin expansion, which Stifel suggests could translate to earnings per share exceeding $10.50.

In other recent news, Align Technology reported its Q2 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $2.49, missing the anticipated $2.57. Additionally, Align Technology’s revenue reached $1.012 billion, which did not meet the projected $1.06 billion. These results are significant for investors as they highlight a deviation from analyst forecasts. The earnings report reflects recent developments affecting the company. While the earnings miss is notable, it is important for investors to consider this information in the context of other market factors. No analyst upgrades or downgrades were reported in conjunction with these earnings results.

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