Align Technology (ALGN) PT Lowered to $155 at UBS Amid Weak Sentiment

UBS analyst Kevin Caliendo lowered the price target on Align Technology (NASDAQ: ALGN) to $155.00 (from $160.00) while maintaining a Neutral rating.

The analyst commented, "Set-up and Sentiment: ALGN's stock is off 38% YTD, off 81% from its 2021 highs, and is now trading at a historically low multiple following its disappointing 2Q print. Several factors are weighing on results and sentiment: 1) for the first time in years, aligners have lost share as a category vs. wires and brackets; 2) the perception that ALGN is losing incremental share to competitors 3) ASP declines signal a weakness in the positioning and pricing model for Invisalign; 4) Consumer confidence remains tepid; 5) Management seemingly has less ability to forecast its business, exacerbating a lack of investor conviction in the embedded 4Q sales ramp (at minimum 3% y/y growth, vs. negative growth in first three quarters of 2025) needed to achieve the low-end of ALGN' FY25 sales guidance (flat to "slightly" up y/y); and 6) Industry-wide checks that suggest dental demand overall remains tepid. Based on our conversations, we believe investors have only modest conviction ALGN can meet consensus estimates for 3Q and are skeptical the company can retain guidance for the full year."

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