Goldman ups Align Technology to Neutral on more confidence in near-term demand

As previously reported, Goldman Sachs analyst Nathan Rich upgraded Align Technology to Neutral from Sell with a price target of $307, up from $165. Uncertainty still exists on the macro outlook, but Align’s Q4 report included sequential case growth for the first time in six quarters and management saw stability in the Americas/EMEA regions, the analyst tells investors. Following the quarter, Goldman views the outlook as more balanced given improved elective demand and an opportunity with new product cycles. The firm’s new target multiple reflects stronger earnings growth and increased stability in near-term demand, but it would argue that the stock’s implied valuation is still elevated relative to what it sees as the long-term growth outlook.