Stifel reiterates Buy rating on Align Technology stock with $275 target

Investing.com - Stifel has maintained its Buy rating and $275.00 price target on Align Technology (NASDAQ:ALGN), according to a research note released Wednesday. The target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $180 to $275, with the stock currently trading below its Fair Value.

The dental equipment maker’s stock has rallied since Stifel’s previous analysis, outperforming the iShares U.S. Medical (TASE:BLWV) Devices ETF (IHI) by 11 percent following earlier concerns about tariffs. With a market capitalization of $13.84 billion and impressive gross margins of 70%, Align demonstrates strong market position in the medical devices sector.

Stifel’s market checks indicate U.S. providers’ 2025 adult case volume expectations have slightly strengthened compared to three months ago, with second-quarter U.S. case volume estimated to increase sequentially in the mid-single digit percentage range.

The research firm also notes that Align’s market share among general practitioners and orthodontists appears largely stable, suggesting continued business momentum.

Stifel identifies several factors that could support further stock appreciation, including positive 2025/2026 earnings revisions aided by foreign exchange and VAT dynamics, accelerating revenue growth into 2026, and direct-fabrication development in 2027.

In other recent news, Align Technology reported stronger-than-expected earnings for the first quarter of 2025, with earnings per share (EPS) of $2.13, surpassing analyst forecasts of $2.00. The company’s revenue also slightly exceeded expectations, reaching $979.3 million compared to the anticipated $977.54 million. Align Technology has announced a new stock repurchase program, authorizing the buyback of up to $1 billion of its common stock over the next three years. This comes after the completion of a previous $1 billion buyback program. Additionally, Align Technology held its 2025 Annual Meeting of Stockholders, where several proposals were approved, including an amendment to its 2005 Incentive Plan and the election of ten director nominees. The company also announced the approval of PricewaterhouseCoopers LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2025. In another development, Stifel analysts maintained their Buy rating on Align Technology, with a price target of $275, following the company’s 2025 Investor Day. The firm revised its previous top-line growth goal to a more conservative 5-15% for the years 2026 to 2028. These recent developments highlight Align Technology’s strategic initiatives and financial performance, providing investors with a comprehensive view of the company’s current activities.

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