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Investing.com - Piper Sandler has reiterated an Overweight rating and $190.00 price target on Align Technology (NASDAQ:ALGN), representing significant upside potential from current levels around $131, as the company pursues patent infringement litigation against competitor Angel. According to InvestingPro data, the stock is currently trading near its 52-week low of $127.70, while maintaining a GOOD overall financial health score.
The litigation spans the United States, Europe, and China, representing a broader geographic scope than Align’s previous patent disputes, according to Piper Sandler’s research note.
The timing of Align’s legal action coincides with potential profitability challenges for Angel in China, where orthodontic value-based pricing initiatives could lead to price reductions later this year or in early 2025.
Align is simultaneously introducing more price-competitive aligner options to counter Angel’s market position, a strategy that Piper Sandler believes could complicate Angel’s efforts to gain additional market share.
Piper Sandler views these actions as evidence that Align is taking a more aggressive approach to addressing competitive threats from Angel, potentially helping to reduce the market share pressures that have affected Align in recent quarters.
In other recent news, Align Technology reported disappointing second-quarter results, missing sales expectations and subsequently lowering its full-year guidance. This development had a ripple effect, impacting competitors like Straumann, whose shares dropped significantly. Meanwhile, Stifel reiterated its Buy rating on Align Technology, maintaining a price target of $200, following the company’s announcement of new pricing plans aimed at enhancing its market position. These plans include expanding the pricing menu to offer more aligner options, a move intended to attract more providers.
On the other hand, Mizuho adjusted its price target for Align Technology, lowering it from $245 to $210, while still maintaining an Outperform rating. This adjustment was attributed to weaker-than-expected patient conversion trends in June. In corporate developments, Align Technology announced the termination of Stuart Hockridge, Executive Vice President of Global Human Resources, effective May 2026. The termination is reportedly not for cause, and any severance payments will align with existing agreements. These recent developments continue to shape the outlook for Align Technology.
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