Align Technology (ALGN) Stock Forecast & Price Target

Align Technology demonstrates a strong growth trajectory as evidenced by an 8.3% year-over-year increase in teen case starts and a 4.9% increase in new Invisalign case starts, totaling 647.8k for the quarter. Additionally, the company expects sequential growth in average selling prices and volumes, forecasting a 4% revenue increase for the fourth quarter, supported by solid demand in international markets and among dental service organizations. Moreover, while clear aligner sales reached $804.6 million, falling slightly short of expectations, the 5.6% year-over-year growth in scanner and services revenue to $207.8 million enhances overall company prospects, signaling resilience and diverse revenue streams.

Align Technology recently reported an adjusted EPS of $2.49, falling short of analyst expectations of $2.57, which highlights weak operational performance. Moreover, the company experienced a decline in adjusted gross margins by 40 basis points year-over-year to 70.5%, contributing to operating margins that significantly missed expectations at 21.3%, down 100 basis points year-over-year. Additionally, management has lowered its 2025 growth projections for clear aligner volume and revenue, attributing this to challenges in revenue visibility and a weaker macroeconomic environment, further indicating a negative outlook for the company’s financial performance.