Wells Fargo predicts Align Technology stock to rise over 20%

On February 14, 2025, Wells Fargo initiated coverage on Align Technology, a medical device company known for its clear aligners, with an overweight rating. The bank established a price target at $255, indicating a potential upside of over 24% from the previous day's close. Analyst Vik Chopra acknowledged existing macroeconomic challenges impacting the dental aligner market but highlighted Align's competitive position and significant discount relative to its historical averages. Chopra remarked that Align Technology maintains a strong market presence, holding approximately two-thirds market share within the U.S. clear aligner space. Despite the flat growth caused by inflation and interest rates, Chopra believes that Align is positioned for long-term growth, especially with its ability to capture the teen market, a demographic where its penetration is currently only 5-6%. He projects that Align will continue to outperform the overall market in 2025, building on a revenue growth of 3.5% that surpassed the market's 2.6% growth in 2024. While analysts largely share a positive outlook on Align Technology, with 10 of the 17 analysts suggesting a strong buy or buy rating, there remains cautious sentiment among some who hold a neutral stance. The overall consensus for the stock price is around $258, presenting a potential upside of over 26%. The encouraging sentiment comes in light of Align's poor performance over the past year, during which its stock price declined more than 32%. Following the analyst's note, shares of Align Technology increased nearly 1% during pre-market trading. Expectations for growth are bolstered by Align's strategic focus on appealing to teens. The company has been investing in education about Invisalign aligners through social media platforms, recognizing this demographic as an important growth area. Align Technology's leadership in the dental aligner market, coupled with its efforts to connect with younger consumers, positions the company well for future growth as overall market conditions begin to recover.