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On Tuesday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Align Technology (NASDAQ:ALGN) stock, with analyst Steven Valiquette setting a new price target of $245, down from the previous $250, while retaining an Outperform rating. Currently trading at $181.09, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $150.54 to $275. The revision follows recent industry discussions at the American Association of Orthodontists (AAO) Annual Session in Philadelphia.
Valiquette’s report highlights that Align Technology, which is scheduled to report earnings on April 30 and hold an analyst meeting in New York on May 6, did not present significant new information at the AAO session beyond its April 24 MAOB press release. InvestingPro data shows six analysts have recently revised their earnings estimates downward for the upcoming period. The analyst’s engagement with various orthodontic companies at the event provided insight into the competitive landscape and market dynamics.
One key competitor mentioned in the report is AngelAlign, which is seen as Align’s most significant global rival. Despite not being covered by Mizuho, AngelAlign’s strategy regarding U.S. tariffs was noted. The company has decided not to pass on incremental tariff costs to U.S. practitioners through price increases. Instead, AngelAlign plans to absorb these costs or find alternative solutions, such as shifting manufacturing outside of China, to mitigate tariff impact.
In light of the discussions and market conditions, Mizuho has slightly reduced its 2025 earnings per share (EPS) estimates for Align Technology from $10.00 to $9.90. The adjustment is mainly attributed to softer consumer sentiment expected in the second quarter of the year.
Investors and stakeholders are now looking ahead to the upcoming financial disclosures and the analyst meeting for further details on Align Technology’s performance and strategic direction amidst a competitive and changing market environment. The company maintains strong fundamentals with a 70% gross profit margin and moderate debt levels. For deeper insights into Align Technology’s financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and eight additional exclusive ProTips in our detailed research report.
In other recent news, Align Technology has been the focus of various analyst assessments and market developments. Stifel analysts maintained their Buy rating with a $275 price target, citing positive trends for the company’s Invisalign products and projecting that first-quarter results may exceed expectations. In contrast, HSBC downgraded the stock from Buy to Hold, reducing the price target from $290 to $170 due to increased risk and reduced growth estimates. Piper Sandler reaffirmed an Overweight rating and a $235 target, acknowledging mixed first-quarter performance but expressing confidence in the stock’s potential. Mizuho Securities maintained an Outperform rating with a $250 target, highlighting the impact of recent global tariff updates on Align Technology’s operations. The exemption of USMCA-compliant goods from tariffs benefits Align, while a new 17% tariff on iTero scanners produced in Israel could affect costs. These recent developments indicate varying perspectives on Align Technology’s future, with analysts weighing factors such as product performance, market conditions, and tariff implications.
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