On Friday, Piper Sandler maintained a positive stance on shares of Align Technology (NASDAQ:ALGN) shares, reiterating an Overweight rating and a $315.00 price target. The firm's assessment follows a review of the clear aligner market, noting a 6% year-over-year decline in case volumes for August. Despite this decrease, the month's performance was considered stable when accounting for one fewer weekday compared to August of the previous year.
The analyst observed that the quarter-to-date figures remained roughly flat year-over-year, aligning with management's perspective of a mostly stable market. The consistent results from July, once adjusted for the difference in days, further support this view. The upcoming month's performance is gaining attention due to its historically easier comparative period, especially in the U.S. and EMEA adult segments.
Piper Sandler expressed confidence in the forthcoming third-quarter results, citing observed orthodontic trends in the U.S. for July and August. The firm's current outlook anticipates a favorable outcome for the full quarter. Moreover, the valuation of Align Technology's shares has been highlighted as an attractive entry point for investors, as historically, similar valuations have presented rewarding opportunities.
The firm concluded by identifying Align Technology as one of the more attractive risk/reward opportunities on their list as the year approaches its end. They emphasized the potential for investors, given the current market valuation and the expected performance for the remainder of the quarter.
InvestingPro Insights
As Align Technology (NASDAQ:ALGN) navigates through market fluctuations, the InvestingPro data provides a comprehensive snapshot of the company's financial health. With a market capitalization of $17.1 billion, Align Technology is trading at a P/E ratio of 38.8, which adjusts to 35.72 on a last twelve months basis as of Q2 2024.
This valuation is paired with a PEG ratio of 0.85, suggesting that the company's earnings growth is considered reasonably priced relative to its earnings growth potential. Moreover, the company's revenue growth shows a steady increase of 5.5% over the last twelve months as of Q2 2024, indicating a consistent upward trajectory in its financial performance.
InvestingPro Tips highlight several key aspects that investors might find compelling. Align Technology boasts a perfect Piotroski Score of 9, which is indicative of strong financial health. Moreover, the company's management has been actively buying back shares, reflecting confidence in the company's value.
These factors, combined with a high return over the last decade and a prediction by analysts that the company will remain profitable this year, position Align Technology as a potentially attractive opportunity for investors. For those seeking further insights, InvestingPro offers a total of 11 tips on Align Technology, providing a deeper dive into the company's prospects.
As Piper Sandler maintains an optimistic view on Align Technology's shares, these InvestingPro Insights could offer additional context for investors considering the firm's Overweight rating and $315.00 price target.
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