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Research Alert: CFRA Lifts Opinion On Shares Of Align Technology To Hold From Sell
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Research Alert: CFRA Lifts Opinion On Shares Of Align Technology To Hold From Sell
Aug 3, 2025 7:03 PM

03:55 PM EDT, 08/01/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target price by $1 to $151, a 13.8x multiple of our 2026 EPS forecast, a discount ALGN's historical due to soft demand in the dental market. We cut our 2025 EPS estimate of to $10.02 from $10.07 and 2026's to $10.91 from $11.12. Q2 EPS of $1.72 vs. $1.27, missed the consensus view by $0.08. Revenues missed consensus by 4% due to headwinds in Clear Aligners. Revenue per case compressed to $1,250 from $1,295 Y/Y, reflecting product mix shifts toward lower-priced offerings. Imaging Systems and CAD/CAM results were a bright spot with revenues growing 5.6% Y/Y, led by stronger-than-expected sales of iTero Lumina scanner wands. Operating margin compressed 100 bps Y/Y to 21.3%, reflecting the challenging operating environment. We anticipate continued pressure on average selling price for the remainder of the year from product mix dynamics and competitive factors. Our revised opinion is based on valuation, with shares trading at nearly a 60% discount to the five-year historical forward average, which we think adequately covers current trends and risks.

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