Align Tech’s Long-Term Growth Potential and Undervalued Earnings Power Highlighted Despite Temporary Setbacks

Leerink Partners analyst Michael Cherny has reiterated their bullish stance on ALGN stock, giving a Buy rating on August 13.

Michael Cherny has given his Buy rating due to a combination of factors that highlight Align Tech’s potential for long-term growth despite current challenges. He acknowledges that the stock is experiencing a temporary setback following a recent earnings miss, but he believes this is more of a cyclical issue rather than a fundamental flaw in the business. Cherny emphasizes that the company’s earnings power is undervalued at its current valuation, which presents an attractive opportunity for investors.
Moreover, Cherny’s analysis suggests that even with a more conservative growth outlook, Align Tech’s strategic initiatives, such as the expansion of new platforms and tools, as well as growth in various markets, provide a solid foundation for future earnings growth. He maintains that the company’s long-term earnings per share (EPS) potential remains strong, supporting his Outperform rating and price target. Overall, Cherny sees significant value in Align Tech’s stock relative to its growth prospects, making it a compelling investment choice.

In another report released on August 13, Evercore ISI also maintained a Buy rating on the stock with a $170.00 price target.

ALGN’s price has also changed moderately for the past six months – from $185.770 to $141.980, which is a -23.57% drop .