Align Technology: Resilient Core Markets, DSO-Driven Growth, and Attractive Valuation Support Buy Rating

William Blair analyst Brandon Vazquez has maintained their bullish stance on ALGN stock, giving a Buy rating yesterday.

Brandon Vazquez has given his Buy rating due to a combination of factors tied to Align’s recent performance and outlook. He highlights that both revenue and earnings modestly exceeded market expectations, driven by stronger-than-anticipated case volumes even though pricing was slightly weaker. Vazquez emphasizes the resilience of Align’s core markets and notes that the company is actively using key growth drivers—such as its doctor-led (DSO) channel, product innovation, and more focused direct-to-consumer efforts—to support mid-single-digit clear aligner volume growth, which he views as a critical indicator for the stock.

He also underscores the impressive momentum in the DSO segment, arguing that if this channel sustains double-digit expansion into 2026, it reduces the risk around management’s outlook given its increasing share of the business. Although the company’s 2026 growth guidance of roughly 3% to 4% may appear conservative and trails its longer-term plan, Vazquez views this as setting an achievable bar that could be exceeded if consumer demand improves. Finally, with the shares trading at about 14 times his 2027 earnings estimate, he believes the current valuation already embeds much of the recent macro uncertainty, leaving a favorable risk-reward skew that justifies his Outperform (Buy) recommendation.

Vazquez covers the Healthcare sector, focusing on stocks such as Ceribell, Inc., Medtronic, and CVRx. According to TipRanks, Vazquez has an average return of 5.4% and a 51.02% success rate on recommended stocks.

In another report released yesterday, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $183.00 price target.