Expert Outlook: Align Tech Through The Eyes Of 5 Analysts

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Align Tech ALGN in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $265.4, a high estimate of $335.00, and a low estimate of $197.00. This current average has increased by 15.9% from the previous average price target of $229.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Align Tech by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Align Tech. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Align Tech compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Align Tech's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Align Tech's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Align Tech analyst ratings.

Discovering Align Tech: A Closer Look

Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the FDA in 1998, and it has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans and iTero scans make up over half of these scans.

Key Indicators: Align Tech's Financial Health

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining Align Tech's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -0.36% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.96%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Align Tech's ROE excels beyond industry benchmarks, reaching 3.34%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Align Tech's ROA excels beyond industry benchmarks, reaching 2.0%. This signifies efficient management of assets and strong financial health.

Debt Management: Align Tech's debt-to-equity ratio is below the industry average at 0.03, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.