Align Technology initiated with a Hold at Needham

Needham initiated coverage of Align Technology with a Hold rating and no price target The firm is positive on Align’s long-term earnings growth potential with balance sheet optionality, and estimates the company can sustain 6%-7% revenue growth with 10% earnings growth. However, consensus estimates for 2025 and 2026 are likely too high, especially considering ongoing constrained clear aligner demand, the analyst tells investor sin a research note. Given this, Needham believes the stock’s current valuation aligns with the near-term risk/reward, which likely limits the shares outperforming.