Align Technology Kept at Hold as Higher Gas Prices Offset Tax Refund Tailwind for Clear Aligners

Needham analyst David Saxon has maintained their neutral stance on ALGN stock, giving a Hold rating on April 24.

David Saxon has given his Hold rating due to a combination of factors related to consumer spending dynamics in the U.S. clear aligner market. He notes that while average tax refunds are running about $333 higher year over year, this potential tailwind for adult clear aligner demand is likely to be offset by other cost pressures on consumers.

Specifically, Saxon estimates that higher gasoline prices will cause the average consumer to spend roughly $517 more on fuel this year, more than absorbing the benefit of larger refunds. As a result, he concludes that these opposing forces leave Align Technology’s overall risk/reward profile essentially unchanged, leading him to reaffirm a neutral, Hold stance on the stock.

In another report released on April 24, Morgan Stanley also maintained a Hold rating on the stock with a $188.00 price target.