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Investing.com - Stifel maintained its Buy rating and $200.00 price target on Align Technology (NASDAQ:ALGN) following the company’s discussion of upcoming pricing strategy changes. According to InvestingPro data, the stock currently trades at $139.12, with analyst targets ranging from $140 to $220, suggesting potential upside. The company maintains a "GOOD" overall financial health score.
The dental equipment maker plans to expand its comprehensive pricing menu with more additional aligner options, allowing providers to purchase according to their specific preferences, according to Stifel’s research note. With a robust gross profit margin of nearly 70% and strong cash flow generation, the company appears well-positioned to implement these pricing changes.
Align Technology expects to introduce a zero additional aligner plan by the end of 2025 with a lower list price, though Stifel indicates this may not necessarily translate to lower revenue for the company.
While Align provided limited information on near-term trends, the company built its third-quarter 2025 guidance based on June’s poor performance trends, suggesting a conservative outlook for the current period.
For the implied fourth quarter 2025 guidance, Align anticipates sequential growth driven by full Lumina system sales, incremental average selling price benefits from the elimination of value-added tax, and growing contributions from new products, despite challenges including tepid industry growth and market share losses.
In other recent news, Align Technology reported disappointing second-quarter 2025 earnings, missing both earnings per share (EPS) and revenue forecasts. The company’s EPS was $2.49, below the expected $2.57, and revenue reached $1.012 billion, falling short of the projected $1.06 billion. Following these results, Align Technology also lowered its full-year guidance, which has raised concerns among analysts. Morgan Stanley downgraded Align Technology from Overweight to Equalweight, citing growth concerns and reducing its price target to $154.00 from $249.00. Similarly, Stifel adjusted its price target to $200.00 from $275.00, maintaining a Buy rating, while Mizuho reduced its target to $210.00, maintaining an Outperform rating. These adjustments highlight the impact of weaker patient conversion and case volume trends in June. Barclays analyst Hassan Al-Wakeel noted the negative implications for competitors like Straumann, as Align’s results suggest broader industry challenges.
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