Align Technology, Inc. (NASDAQ:ALGN) faces a downward trend in consensus price targets amidst macroeconomic challenges and foreign exchange headwinds.
The company reported mixed results in its last earnings, with earnings per share at $2.41 surpassing estimates but revenue falling short.
Despite current challenges, analysts like Richard Newitter from Leerink Partners see potential in Align, setting a high price target of $770.
Align Technology, Inc. (NASDAQ:ALGN) is a key player in the medical device industry, renowned for its Invisalign clear aligners and iTero intraoral scanners. The company operates in two main segments: Clear Aligner and Scanners and Services, serving orthodontists, general practitioner dentists, and specialists in restorative and aesthetic dentistry. Align faces competition from other dental technology companies, but it remains a leader due to its innovative products.
The consensus price target for Align has shown a downward trend over the past year. Last month, the average target was $266.25, down from $276 three months ago, and significantly lower than the $323.75 target a year ago. This decline suggests analysts are becoming more cautious, possibly due to macroeconomic challenges and foreign exchange headwinds affecting the company, as highlighted by Zacks.
Despite these challenges, Align’s stock has seen a 1.2% increase since its last earnings report, released 30 days ago. The report showed mixed results, with earnings per share surpassing estimates at $2.41, compared to the Zacks Consensus Estimate of $2.32. However, revenue fell slightly short of expectations, contributing to a year-to-date stock decline of 21.56%.
Align’s Q2 2024 earnings report revealed revenue growth across all regions, driven by the Imaging Systems & CAD/CAM Services segment. However, the company has adjusted its sales outlook for 2024, lowering projections. Analyst Richard Newitter from Leerink Partners has set a price target of $770, reflecting optimism about Align’s potential despite current challenges.
Align’s recent earnings call provided insights into its strategies and financial outlook. The company aims to leverage its large total addressable market, robust gross margins, and capable management to regain investor confidence. Investors should consider these factors, along with analyst price targets, when evaluating Align’s stock.
