Gold rally may be losing steam but no major correction seen: DB
Investing.com - Jefferies downgraded Align Technology (NASDAQ:ALGN) from Buy to Hold on Friday, slashing its price target to $140.00 from $215.00 amid concerns about clear aligner market penetration and ongoing share loss. The dental technology company, currently valued at $9.56 billion, trades at a P/E ratio of 22.27, which InvestingPro analysis indicates is high relative to its near-term earnings growth potential.
The downgrade follows Jefferies’ proprietary U.S. Dental Survey of 49 orthodontists and general dentists conducted in early September, which revealed expectations for only modest clear aligner penetration through 2030 and continued market share erosion for Align Technology . This concern is reflected in recent analyst sentiment, with InvestingPro data showing 12 analysts have revised their earnings expectations downward for the upcoming period.
The survey showed dental professionals expect clear aligner market penetration to increase by just 3-4 percentage points through 2030 across both adult and teen segments, which Jefferies characterized as "underwhelming" despite Align’s plans to expand treatment offerings with lower upfront costs.
Survey results also indicated mixed perspectives on Align’s second-quarter observation of a market shift toward traditional brackets and wires, with 24% of respondents confirming this shift, 57% not seeing it, and 18% unsure.
Jefferies acknowledged that Align’s valuation at near-trough levels appears "relatively attractive" but concluded that a lack of near-term positive catalysts and macroeconomic uncertainty would likely limit multiple expansion, with 22% of survey respondents expecting procedure demand declines due to macroeconomic headwinds. Despite these concerns, the company maintains strong fundamentals with more cash than debt on its balance sheet and has demonstrated profitability over the last twelve months with a healthy gross margin of 70%.
In other recent news, Align Technology has filed a complaint with the U.S. International Trade Commission against Angelalign Technology, alleging patent infringement related to clear aligners. The company seeks to block the importation and sales of these products in the United States. Piper Sandler has maintained an Overweight rating on Align Technology, with a price target of $190, noting the company’s ongoing litigation efforts across the United States, Europe, and China. Meanwhile, Stifel reiterated its Buy rating with a $200 price target, highlighting Align’s new pricing plans aimed at increasing market share among teenagers and reducing provider defections.
Additionally, Align Technology announced the future termination of Executive Vice President Stuart Hockridge, effective May 2026, as disclosed in a filing with the Securities and Exchange Commission. The termination is not due to any cause specified in his employment agreement, and severance terms will align with existing agreements. Stifel also supported Align’s strategy to expand its pricing options, which aims to offer providers more flexibility in purchasing aligners. These developments reflect Align Technology’s ongoing efforts to maintain its market position and adapt to competitive pressures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.