Align Technology downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Align Technology (ALGN) to Equal Weight from Overweight with a price target of $154, down from $249. The firm believes the company’s Q2 miss and guidance cut calls into question its near-term growth prospects as well as the achievability of its recently stated long-range plan in May. The analyst wants clarity on market demand stabilization, case conversion, and Align’s competitive dynamics before again recommending the shares. Morgan Stanley sees a “sustained lackluster backdrop” in dental impacting clear aligner demand.