Hold Rating Maintained on Angelalign as Improved Fundamentals Offset by Full Valuation and Cost Risks

Angelalign Technology Inc., the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Alexis Yan from Morgan Stanley maintained a Hold rating on the stock and has a HK$75.00 price target.

Alexis Yan has given his Hold rating due to a combination of factors that balance improving fundamentals with a fairly full valuation. He modestly increased revenue estimates for 2025–2027 on the back of stronger-than-anticipated case volumes in China following Angelalign’s decision to cut domestic prices, and he still expects the company to achieve its 2025 overseas case volume target. At the same time, he sees some margin benefits ahead from operating leverage, a gradual and disciplined build-out of the overseas sales force, and the timing of the U.S. facility ramp-up, which reduces the near-term drag on profitability. However, these positives are offset in part by higher general and administrative costs, particularly related to litigation, which tempers the overall earnings uplift.

In aggregate, Yan raises his recurring EPS forecasts meaningfully for the next three years and nudges his discounted cash flow–derived price target slightly higher to HK$75.0 from HK$74.0. With the new target only moderately above the current share price of HK$62.45, he judges the upside as limited relative to the risks, including execution in overseas markets and ongoing cost pressures. This risk‑reward profile, in his view, does not yet justify a more aggressive stance on the stock. As a result, he concludes that a Hold rating is appropriate while awaiting clearer evidence of sustained earnings and margin expansion that could support a more compelling re‑rating.