Align Technology (ALGN) Stock Forecast & Price Target

Align Technology continues to demonstrate strong growth potential, as evidenced by a year-over-year increase of 8.3% in teen case starts, supported by robust performance in the Asia-Pacific and EMEA regions. Although clear aligner sales of $804.6 million missed analyst expectations, revenue from scanner and services increased by 5.6% year-on-year to $207.8 million, contributing to total company revenue of $1,012 million. With increasing case volumes and a favorable geographic mix projected for future quarters, Align Technology is positioned for sequential growth in revenue and improved operational margins.

Align Technology reported an adjusted EPS of $2.49, falling short of market expectations of $2.57, indicating weak operating performance. The company experienced a decline in adjusted gross margin by 40 basis points year-over-year to 70.5%, while the operating margin also came in under expectations at 21.3%, reflecting challenges in revenue growth. Additionally, due to a weaker macroeconomic environment, management has lowered its projection for 2025 clear aligner volume growth to low single digits, which contributes to an overall negative outlook for the company's financial performance.