Amazon jumps 5% after AWS and OpenAI announce $38B partnership
Investing.com - Leerink Partners has raised its price target on Align Technology (NASDAQ:ALGN) to $189.00 from $172.00 while maintaining an Outperform rating on the stock. This target represents a potential 43% upside from the current price of $131.91, with InvestingPro data showing the stock is trading 46% below its 52-week high of $246.19.
The price target increase follows what Leerink described as "solid upside across the board" in Align’s third-quarter results, which exceeded expectations after a challenging second quarter. The firm noted that a combination of volume uptick and steady average selling prices drove revenue beat and margin improvements, despite a softer equipment quarter. This performance contributed to Align’s solid gross profit margin of 69.9% over the last twelve months.
Leerink highlighted that Align’s performance demonstrated the global breadth of the company’s market-leading products, overcoming both macro and micro concerns that had previously weighed on investor sentiment.
The research firm acknowledged that while more signs of improving market conditions are needed to predict greater revenue re-acceleration, the current valuation does not fully reflect Align’s potential upside. Leerink increased its target multiple from approximately 10x to 11x CY26 EV/EBITDA to account for the improved performance.
Leerink reiterated its Outperform rating based on Align’s market-leading positions, appealing valuation, and balance sheet flexibility, noting that the new price target still remains well below historical metrics. InvestingPro data reveals management has been aggressively buying back shares, with the company operating with a moderate debt level (debt-to-equity ratio of just 0.03) and maintaining a healthy Altman Z-Score of 4.33. Discover 6 more InvestingPro Tips and comprehensive analysis in the Pro Research Report, available for over 1,400 US stocks.
In other recent news, Align Technology reported its third-quarter 2025 earnings, showcasing a performance that exceeded market expectations. The company announced an earnings per share of $2.61, which was higher than the projected $2.42, representing a 7.85% positive surprise. Revenue figures also surpassed forecasts, with Align Technology generating $995.7 million compared to the anticipated $975.92 million. This financial performance highlights Align Technology’s ability to outperform analyst estimates. These developments come amid various market activities and are crucial for investors assessing the company’s current standing. Align Technology’s recent financial results demonstrate strong operational execution, as evidenced by the higher-than-expected earnings and revenue figures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.