On Thursday, Piper Sandler maintained a positive outlook on shares of Align (NASDAQ:ALGN) Technology, reaffirming an Overweight rating and a $315.00 price target for the company's stock. The firm's assessment comes after observing a 9% year-over-year increase in clear aligner case volumes for the month of July. This growth was partially attributed to the number of selling days within the month, but even after adjusting for this, both total and teen clear aligner volumes exceeded first-half averages.
The report highlighted that teen clear aligners, in particular, saw a significant outperformance, marking the largest margin in nearly three years, approximately 9 percentage points higher. This trend is seen as a favorable development for Align Technology , though the analyst noted that sustained volume growth and stable average selling prices (ASPs) would be necessary to fully regain investor confidence.
The analyst from Piper Sandler expressed less concern about the possibility of increased discounting in the clear aligner market, despite the pricing dynamics observed in the second quarter. The firm's current stance is based on the recent volume trends, suggesting a cautious optimism for Align Technology's market position.
Align Technology's stock rating remains unchanged at Overweight, with a price target set at $315.00, as the company continues to navigate market conditions and investor expectations.
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