Stock Price & Analysis

Based on the recent data and analysis, here's a comprehensive assessment of ALGN stock:

Technical Analysis

The stock is showing signs of recovery with recent upward momentum, trading at $308.77 as of the last close. The stock has formed a series of higher lows and higher highs since January 2024, indicating a potential trend reversal from its previous downtrend.

Recent Analyst Coverage

• Wells Fargo initiated coverage with an Overweight rating and $255 price target, suggesting a 24% upside potential
• Evercore ISI maintained a Buy rating with a $260 price target
• The consensus among analysts shows a "Moderate Buy" rating, with 10 out of 17 analysts giving Strong Buy or Buy ratings

Fundamental Strengths

• Market leadership with approximately two-thirds market share in clear aligners
• Strong growth potential in teen market with only 5-6% current penetration
• Revenue growth outpacing market growth (3.5% vs. 2.6% in 2024)

Growth Catalysts

• Improving market conditions expected in 2025
• Large untapped opportunity in teen demographic
• International market expansion, particularly in China
• Operational efficiency initiatives to improve margins

Risk Factors

• Trading at a significant discount to historical averages
• Macro headwinds affecting consumer discretionary spending
• Competitive pressures in the clear aligner space

Recommendation Based on the technical momentum, strong analyst support, market leadership position, and growth catalysts, ALGN presents a buying opportunity at current levels. The stock appears poised for upward movement as market conditions improve and operational efficiencies take effect.

Based on the provided data and recent analyst reports, here's a concise price prediction for ALGN stock in 2025:

Wells Fargo recently initiated coverage with a price target of $255, projecting a 24% upside from current levels. The bank cites improving market conditions and Align's strong competitive position in the clear aligner space, holding about two-thirds market share.

Evercore ISI maintains a Buy rating with a price target of $260, while the consensus among 17 analysts shows an average target of $258, suggesting over 26% upside potential from current levels.

Technical analysis indicates ALGN is currently trading near $207, showing a bearish trend in the short term with RSI at 37.73 suggesting oversold conditions. The stock is trading below both its 200-day SMA ($234.58) and 250-day SMA ($250.25), indicating sustained downward pressure.

Price Prediction for 2025: Base case: $258 (consensus target) Bull case: $270 (based on teen market penetration growth potential) Bear case: $196 (Fibonacci S2 support level)

The most likely scenario points to $255-260 range by end of 2025, supported by:

1. Expected market share growth in teen segment
2. Revenue growth projection of 11.6% for 2025
3. Strong analyst consensus and institutional backing

The S1 support level for ALGN Stock is $190.81 ,The R1 resistant level for ALGN Stock is $219.36.

As of the end of day on 2025-02-21, the price of ALGN Stock was $191.

The target price for ALGN Stock according to analyst rating is 262.67, with the highest price target at 295.00 and the lowest at 200.00. Analysts have a Moderate Buy rating on ALGN Stock overall.

The market cap of ALGN is $14.2B.

Based on the provided data and recent analyst coverage, here's a comprehensive analysis of ALGN's valuation:

Technical Analysis

The stock is currently showing bearish signals with RSI at 37.73 and MACD at -3.76, indicating downward momentum. The stock is trading below both its 200-day ($234.58) and 250-day ($250.25) moving averages, suggesting a longer-term downtrend.

Valuation Metrics

The stock appears overvalued based on several key metrics:

1. P/E Ratio: Current P/E of 47.14x (2023/FY) is significantly higher than the industry average and shows an increase from 45.74x in 2022/FY.

2. EV/EBITDA: At 25.03x (2023/FY), it's considerably higher than the 19.84x in 2022/FY, indicating premium pricing.

3. Price/Sales: The P/S ratio increased to 5.43x in 2023 from 4.43x in 2022, suggesting higher valuation relative to revenue.

Recent Developments & Analyst Views

1. Wells Fargo recently initiated coverage with an Overweight rating and $255 price target, suggesting potential upside despite current valuation concerns.

2. Evercore ISI maintains a Buy rating with a $260 price target, though the stock has underperformed with a 17.3% drop over the past 52 weeks.

3. The consensus among analysts shows a "Moderate Buy" rating, with 8 Strong Buys, 1 Moderate Buy, 2 Holds, and 1 Moderate Sell.

Conclusion ALGN appears overvalued based on:

• Elevated multiples across P/E, EV/EBITDA, and P/S ratios
• Trading below key moving averages
• Weak technical indicators
• Recent margin pressures despite revenue growth

However, analysts remain optimistic about future growth potential, particularly with improving consumer sentiment and margin expansion opportunities.

Align Technology, Inc. is a global medical device company that designs, manufactures, and sells the Invisalign system of clear aligners, iTero intraoral scanners, and exocad computer-aided design and computer-aided manufacturing (CAD/CAM) software for digital orthodontics and restorative dentistry. The Company provides Align Digital Platform. Its segments include Clear Aligner, and Imaging Systems and CAD/CAM Services (Systems and Services). The Clear Aligner segment consists of comprehensive products, non-comprehensive products and non-case products. Its comprehensive products include Invisalign Comprehensive and Invisalign First. The Company's non-case products include retention products, Invisalign training and adjusting tools. It offers up to four sets of custom clear aligners called Vivera retainers. The Systems and Services segment consists of its iTero intraoral scanning systems. Its services include subscription software, disposables, rentals, leases and pay per scan services.

Based on the provided data and recent analyst coverage, here is the 2030 price prediction for ALGN stock:

The stock price of Align Technology (ALGN) is projected to reach $260-265 by 2030, representing a 25-28% increase from current levels. This forecast is driven by:

1. Strong market leadership with ~66% market share in clear aligners and significant teen market penetration opportunity (currently only 5-6%).

2. Improving market conditions and competitive moat, with Wells Fargo initiating coverage at Overweight with $255 target, indicating strong near-term upside potential [2, 1].

3. Technical analysis shows the stock is currently oversold with RSI at 37.73, suggesting potential for mean reversion and upward momentum once market conditions improve.

ALGN has a total of 21610 employees.