Positive Outlook for Align Tech: Buy Rating Reiterated with Significant Upside Potential

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

Michael Cherny has given his Buy rating due to a combination of factors that suggest a positive outlook for Align Tech. The company has set reasonable medium to long-term growth targets that are not yet reflected in its current valuation. Align Tech’s projected revenue growth of 5-15% from 2026 to 2028 is supported by ongoing core growth, new product introductions, and market expansions, which are expected to drive a realistic growth trajectory.
Additionally, Cherny notes that the company’s average selling prices (ASPs) are influenced by product mix rather than discounting, which should alleviate concerns about increased market competition. Despite ASPs being a potential growth headwind, the improved case start outlook and stable ASPs are anticipated to support robust growth, along with margin improvements. The recent trends indicate that Align Tech can overcome macroeconomic concerns, presenting a compelling risk/reward scenario with significant upside potential. Cherny reiterates an Outperform rating with a price target of $246, based on a valuation of approximately 14 times the estimated CY26 EV/EBITDA.

In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $249.00 price target.