Align Tech, the Healthcare sector company, was revisited by a Wall Street analyst on September 8. Analyst Michael Cherny from Leerink Partners reiterated a Buy rating on the stock and has a $188.00 price target.
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Michael Cherny has given his Buy rating due to a combination of factors that highlight Align Technology’s strategic positioning and potential for recovery. During the GP Summit in Las Vegas, Cherny observed that despite recent challenges, Align’s innovative product portfolio and comprehensive tools continue to lead the market. The company is facing pressures from macroeconomic factors affecting discretionary spending, but management’s initiatives to enhance affordability are expected to support a rebound.
Furthermore, Cherny noted that Align’s shift towards more price-competitive products, such as the 3×3 aligner plan, reflects a strategic adaptation to market demands. This approach not only aligns with increased doctor familiarity and product innovation but also offers higher margins for both Align and practitioners, albeit with lower profit per unit. These strategic moves, coupled with a focus on cost management, reinforce Cherny’s confidence in Align’s long-term earnings potential and justify the Buy rating despite current cyclical downturns.
In another report released on September 8, Stifel Nicolaus also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ALGN in relation to earlier this year.