In a report released yesterday, Michael Cherny from Leerink Partners reiterated a Buy rating on Align Tech (ALGN – Research Report), with a price target of $277.00.
Michael Cherny has given his Buy rating due to a combination of factors that highlight Align Tech’s unique position in the dental market and its potential for long-term growth. Despite the company’s exposure to macroeconomic cyclicality and tariffs, Cherny believes the recent decline in Align Tech’s stock price is excessive. He conducted scenario analyses to assess potential risks from macroeconomic factors and tariffs, as well as opportunities from share buybacks, concluding that the company’s financial strength can offset short-term earnings per share (EPS) challenges.
Moreover, Cherny points out that Align Tech’s current valuation does not fully reflect its ability to manage its earnings trajectory over the coming years. He suggests that the company’s private market valuation could be more attractive than its current trading levels. While macroeconomic factors may continue to cause stock price fluctuations, Cherny sees a favorable risk/reward balance with potential for further valuation increases if growth continues. Therefore, he reiterates his Outperform rating and maintains a price target of $277.
In another report released on February 23, Wells Fargo also maintained a Buy rating on the stock with a $255.00 price target.
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