Stifel reiterates Buy rating on Align Technology stock ahead of earnings

Published 17/07/2025, 13:26
Stifel reiterates Buy rating on Align Technology stock ahead of earnings

Investing.com - Stifel maintained its Buy rating and $275.00 price target on Align Technology (NASDAQ:ALGN) on Wednesday, citing positive survey results ahead of the company’s upcoming second-quarter earnings report, scheduled for July 30. According to InvestingPro data, the stock currently trades at $190.24, suggesting significant upside potential to Stifel’s target, while maintaining strong financial health with an overall score of "GOOD."

The research firm expressed optimism about Align’s near-term prospects, noting that favorable foreign exchange and VAT dynamics could potentially lead to modest upward revisions in Wall Street’s 2025 and 2026 estimates for the dental products company. With a robust gross profit margin of 70% and healthy return on invested capital of 12%, Align demonstrates solid operational efficiency.

Stifel indicated that while current conditions appear sufficient to drive stock appreciation in the short term, Align would need to demonstrate accelerated case volume and revenue growth in 2026 to move closer to the midpoint of the company’s long-range plan of 5-15% growth.

The firm’s analysis highlighted several variables that could strengthen Align’s growth profile beyond 2026, independent of broader market growth trends.

Stifel suggested that if these factors help Align achieve high single-digit percentage revenue growth in 2026, the company could experience multiple expansion that would drive the stock price toward the firm’s $275 target.

In other recent news, Align Technology reported stronger-than-expected earnings for the first quarter of 2025, with an EPS of $2.13, surpassing the forecast of $2.00. The company’s revenue also slightly exceeded projections, reaching $979.3 million compared to an anticipated $977.54 million. Align Technology has announced a new $1 billion stock buyback program, following the completion of a previous $1 billion repurchase initiative. Stifel has maintained its Buy rating on Align Technology, with a price target of $275, highlighting potential growth catalysts such as earnings revisions and revenue growth. Additionally, Align Technology announced several executive and board changes, including the approval of an amendment to its 2005 Incentive Plan and the election of ten directors. The company’s stockholders also voted to amend its Certificate of Incorporation to replace supermajority provisions with a simple majority vote requirement. Align Technology’s strategic updates, including a focus on geographic expansion and technological advancements, indicate a commitment to maintaining a competitive edge in the market.

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