On Wednesday, Stifel analysts maintained their Buy rating on Align Technology (NASDAQ:ALGN) stock, with a consistent price target of $275.00, representing significant upside potential from the current price of $170.60. According to InvestingPro data, the company, currently valued at $12.5 billion, has received mixed signals from analysts, with 9 recently revising their earnings expectations downward. The firm’s commentary followed Align Technology’s 2025 Investor Day, where the company updated its long-range plan (LRP) and provided insights into its growth strategies by region and innovations in direct fabrication technology.
Align Technology revised its previous top-line growth goal of +20-30% to a more conservative +5-15% for the years 2026 to 2028, with operating margins (OM) anticipated to be between 23-25%. The company, which maintains a healthy gross profit margin of 70% and operates with moderate debt levels, expects that revenue growth and OM will further improve beyond 2029. During the investor event, the Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions were highlighted as double-digit growth areas, with Iberia, U.K./Ireland, and Italy contributing to over half of the EMEA revenue.
The company also outlined its approach to direct fabrication, detailing short-term objectives with new devices, medium-term enhancements to existing products, and long-term plans to potentially replace stereolithography apparatus (SLA) technology. Stifel analysts believe that if Align Technology achieves the mid-point of the updated LRP revenue growth target (+10%), it could act as a catalyst for the stock.
Align Technology’s strategic updates and projections are part of its ongoing efforts to adapt to market conditions and innovate within the dental and orthodontic device industry. The company’s focus on geographic expansion and technological advancements indicates its commitment to maintaining a competitive edge and driving growth over the coming years.
In other recent news, Align Technology reported its first-quarter 2025 financial results, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $2.13, surpassing the projected $2.00, and reported revenue of $979.3 million, slightly above the anticipated $977.54 million. Despite a 1.8% year-over-year revenue decline, the positive earnings surprise suggests effective management amid market challenges. Additionally, Align Technology announced a new $1 billion stock repurchase program, authorized by its Board of Directors, following the completion of a previous $1 billion buyback. This move reflects Align’s strong financial position and commitment to enhancing shareholder value. The company also projects second-quarter revenues between $1,050 million and $1,070 million, anticipating mid-single-digit growth in clear aligner volume for the full year 2025. Align Technology’s recent developments indicate a focus on strategic growth and market expansion, with a continued emphasis on innovation.
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