Align Technology (ALGN) Stock Forecast & Price Target

Align Technology has demonstrated resilience in its core business, with a reported growth in teen case starts of 8.3% year-over-year, driven by strong performance in the APAC and EMEA regions. In the third quarter, new Invisalign case starts increased to 647.8K, representing a 4.9% year-over-year gain, and management's guidance suggests sequential growth in volumes and average selling prices, which are expected to positively impact revenue. Additionally, the company's intraoral scanner sales increased by 5.6% year-over-year, contributing to company-wide revenue of $1,012 million, highlighting the ongoing demand for Align's innovative solutions in orthodontics.

Align Technology recently reported an adjusted earnings per share (EPS) of $2.49, which fell short of analyst expectations and indicates weak operating performance. Furthermore, the adjusted gross margin percentage declined by 40 basis points year-over-year to 70.5%, contributing to a disappointing operating margin percentage of 21.3%, which is down 100 basis points compared to the previous year. Additionally, the company has lowered its growth estimates for clear aligner volume and revenue, reflecting challenges in revenue visibility and a weaker macroeconomic environment, which may further impact investor confidence.