Align Technology initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Align Technology (ALGN) with an Overweight rating and $255 price target As the market leader in clear aligners with two-thirds market share and strong brand recognition, Align has a “durable and competitive moat,” the analyst tells investors in a research note. The firm believes the market is underpenetrated with 22M people out of a pool of 600M seeking treatment for malocclusion. It estimates Align’s penetration is 10%-11%, leaving “significant runway for long-term, durable growth.” With the stock trading at a 29% discount to its three-year average, Align shares “are poised to run when the market improves,” contends Wells.