Stifel maintains Align Technology stock Buy rating, $275 target

Published 28/04/2025, 15:34
Stifel maintains Align Technology stock Buy rating, $275 target

On Monday, Stifel analysts maintained their Buy rating and $275.00 price target for Align Technology stock, traded on (NASDAQ:ALGN). According to InvestingPro data, this target represents significant upside potential, with the stock currently trading at $182.97. The firm’s analysts focused on the company’s Lumina and IPE products, noting their due diligence findings. The company maintains a GOOD financial health score and has shown strong momentum with a 6.46% gain over the past week. They reported a strong performance from Lumina, while IPE showed mixed outcomes, with a poor Net Promoter Score (NPS) but a positive impact on Kid/Teen Invisalign case numbers.

The analysts referenced their April 9, 2025, publication, where they had shared insights from their first-quarter checks for 2025. With earnings scheduled in just 2 days, investors following InvestingPro metrics note that Align trades at a P/E ratio of 32.6x while maintaining healthy profit margins of 70%. These checks indicated that the risk/reward profile for Align Technology heading into its first-quarter earnings was favorable. They found that a miss on first-quarter results and a negative adjustment to the company’s 2025 guidance seemed unlikely.

The analysts also highlighted that while better-than-expected results could lead to a temporary surge in the company’s stock, sustained success would likely depend on the messaging from Align Technology’s management. They emphasized the importance of management communicating that recent foreign exchange movements had provided some additional buffer to their initial 2025 guidance.

The report suggested that if the company’s guidance for 2025 includes some flexibility to accommodate potential softening trends from the second to the fourth quarter—possibly due to a weakening consumer environment—the stock might attract more investors. With revenue growth of 3.54% in the last twelve months and a strong Altman Z-Score of 5.22, InvestingPro analysis suggests the company maintains solid financial footing. This added room in the guidance could make potential investors more comfortable with the idea of investing in Align Technology shares, particularly given its current undervalued status according to InvestingPro’s Fair Value model.

In other recent news, Align Technology has unveiled a new Invisalign product aimed at addressing Class II malocclusions in young patients, incorporating occlusal blocks to enhance treatment effectiveness. This product is part of Align’s strategy to expand its orthodontic offerings, with initial availability in Australia, New Zealand, and select North American and EMEA regions. On the financial front, HSBC has downgraded Align Technology’s stock from Buy to Hold, citing increased risks and lowering the price target to $170.00. Conversely, Piper Sandler has maintained an Overweight rating with a $235.00 price target, noting mixed performance in the first quarter but expressing confidence in the company’s long-term prospects.

Stifel continues to support Align Technology with a Buy rating and a $275.00 target, highlighting positive trends in Invisalign case volumes and projecting potential for first-quarter results to exceed expectations. Mizuho (NYSE:MFG) Securities also reaffirmed its Outperform rating, setting a $250.00 price target, while discussing the impact of global tariff changes on Align’s operations. The company benefits from exemptions under the USMCA agreement for products manufactured in Mexico, though it faces new tariffs on iTero scanners produced in Israel. These developments reflect Align Technology’s ongoing efforts to navigate market challenges while introducing innovative solutions in orthodontics.

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