Evaluating Align Technology’s (ALGN) Valuation Following Strong Earnings and Key Invisalign Platform Upgrades

Align Technology (ALGN) just released its quarterly earnings, showcasing revenue growth that exceeded expectations. This came alongside upgrades to its Invisalign digital planning and iTero Digital Solutions, both intended to boost efficiency for dental providers.

See our latest analysis for Align Technology.

After a challenging stretch earlier this year, Align Technology's recent innovations and upbeat quarterly results have sparked cautious optimism among investors. While the current share price of $137.88 reflects a steep 33.9% one-year total shareholder return loss, a strong 8% share price rebound over the past month suggests that momentum may be returning as the company’s new digital solutions gain traction and buyback activity signals management’s confidence.

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But with the stock rebounding and trading at a steep discount to its analyst price target, investors are left wondering if this renewed optimism marks a genuine buying opportunity or if the market has already factored in Align’s future growth prospects.

Most Popular Narrative: 21.2% Undervalued

With Align Technology’s fair value pegged at $175.07 in the most widely followed forecast, the stock’s last close at $137.88 sets the stage for major upside if these assumptions hold. This optimism, however, leans on quantifiable business improvements and strategic expansion bets. Let’s see what’s driving such a valuation.

The continued expansion of clinical indications for Invisalign (such as Invisalign First for teens/kids and palate expanders) and the increasing adoption by general practitioner dentists are broadening Align's addressable market, positioning the company for higher long-term revenues and double-digit earnings growth as these new segments mature.

Read the complete narrative.

Wondering why analysts are projecting strong gains for Align Technology? The secret lies in the growth assumptions baked into this narrative—think major upgrades in earnings, revenue, and margin expansion. Want to discover the boldest forecasts and what’s needed for Align to actually reach its target? Find out what powers this valuation inside the full story.

Result: Fair Value of $175.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent macroeconomic uncertainty and shifting orthodontic treatment preferences could still challenge Align Technology's ability to meet these optimistic growth projections.

Find out about the key risks to this Align Technology narrative.

Build Your Own Align Technology Narrative

If you prefer to chart your own course or want to interpret the numbers for yourself, you can quickly assemble your own perspective in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Align Technology.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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