UPDATE: Evercore ISI Upgrades Align Technology (ALGN) to Outperform

(updating comment)

Evercore ISI analyst Elizabeth Anderson upgraded Align Technology (NASDAQ: ALGN) from Underperform to Outperform with a price target of $625.00.

The analyst comments "While we were initially skeptical that COVID could cause an acceleration in any dental procedures, two quarters of data have now show that the trend is real and driven both by practitioners who saw the benefits of clear aligners (and digital dentistry more broadly) during the COVID shutdowns in the spring (as well as the efficiency gains vs. brackets and wires) as well as consumers who are spending more time on Zoom as well as have additional disposable income from staying home more (and view orthodontic procedures as safe during the pandemic). These factors, particularly the recognized efficiency gains, should persist, providing visibility into faster and more sustainable clear aligner growth. Given that Invisalign is almost synonymous with clear aligners, ALGN should be the outsized beneficiary of this trend. In addition, the strength of recent iTero sales and notable progress on clear aligner penetration with teens, gives us additional confidence in ALGN’s ability to generate a mid-twenty percent growth CAGR over the medium term. Given this growth outlook, we find today’s valuation at 10x 2022 revenue attractive, particularly when compared to a number of high-growth healthcare peers (some of whom also have lower profitability). Our new price target of $625 is 12x 2022 revenue, and we could see that multiple expanding to 12.5-13x as the market continues to digest the shift to digital and see the broader impact on clear aligner penetration."

For an analyst ratings summary and ratings history on Align Technology click here. For more ratings news on Align Technology click here.

Shares of Align Technology closed at $534.38 yesterday.

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