Piper Sandler has revised its price target for Align Technology (NASDAQ: ALGN), reducing it from $270 to $235 while maintaining a Neutral rating. The adjustment follows a reported 12% year-over-year decline in February aligner volumes, which analysts suggest may have been impacted by weather-related appointment cancellations and office closures.
Despite the setback, Piper Sandler analysts noted that soft demand for clear aligners has been a persistent trend, aligning with mixed dental and consumer data observed in recent weeks. They indicated they will look for a rebound in aligner volumes in their monthly orthodontic data before reassessing their stance.
While Align’s valuation remains attractive, analysts advise investors to consider the company’s broader business performance, including iTero scanners, international growth, and strong profit margins. InvestingPro data highlights that Align maintains a healthy 70.09% gross profit margin and operates with moderate debt levels.
Meanwhile, Align Technology continues to expand its digital dental solutions. The company recently launched Align X-ray Insights in the European Union and the United Kingdom, an AI-powered tool designed to enhance dental diagnostics and patient care. Additionally, Align plans to complete its $1 billion stock repurchase program with a final $225 million buyback, showcasing confidence in its financial strength.
Other Wall Street firms remain optimistic about Align’s long-term potential. Stifel analysts maintain a Buy rating with a $275 price target, citing a 16% year-over-year revenue increase, driven by favorable foreign exchange rates and growth in active Invisalign doctors. Wells Fargo has also initiated coverage with an Overweight rating and a $255 price target, emphasizing Align’s dominant market share in the clear aligner industry and its strong brand recognition.
With ongoing product innovations, expansion efforts, and stock buybacks, analysts see Align Technology as a compelling choice for investors with a higher risk tolerance, particularly within the Med-Tech sector.