Update shared on04 Aug 2025
Fair value Decreased 20%The significant reduction in Align Technology’s analyst price target reflects lowered revenue growth expectations and a material contraction in its future P/E multiple, resulting in a revised fair value of $186.36.
What's in the News
- Align provided Q3 2025 revenue guidance of $965–$985 million, down sequentially; full-year 2025 revenue is expected to be flat to slightly up, with low-single digit clear aligner volume growth.
- The company launched new orthodontic products in India, including the Invisalign Palatal Expander System and the Invisalign System with mandibular advancement, enhancing its Class II treatment portfolio.
- Align announced a brand collaboration with Disney’s "Freakier Friday," integrating Invisalign product placements and a joint marketing campaign to boost teen engagement and awareness.
- Align was dropped from multiple Russell growth indices, including Russell 1000 Growth, Russell 3000 Growth, Russell Midcap Growth, and related benchmarks.
- A $31.75 million class action settlement was reached regarding overpayment claims related to SmileDirectClub aligners; eligible claimants are expected to receive a pro rata cash payment.
- Shareholders approved amendments to the Articles of Association at the AGM.
- The company established a new $1 billion share buyback program valid for three years, though no repurchases were made from May 6 to June 30, 2025; a prior buyback completed $1 billion in repurchases as of May 2025.
Valuation Changes
Summary of Valuation Changes for Align Technology
- The Consensus Analyst Price Target has significantly fallen from $234.36 to $186.36.
- The Consensus Revenue Growth forecasts for Align Technology has significantly fallen from 6.0% per annum to 4.6% per annum.
- The Future P/E for Align Technology has significantly fallen from 26.55x to 22.35x.
Disclaimer
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