In a notable move, HSBC has upgraded Keurig Dr Pepper (KDP) from Hold to Buy, increasing its price target from $36 to $42. This decision follows a strong Q1 performance, where the company reported a 6% rise in net sales and a 10% uptick in comparable earnings per share (EPS). HSBC noted that Keurig Dr Pepper is well-positioned with its robust brand portfolio, leaving room to maintain its full-year guidance.
Another significant upgrade came from KeyBanc, which lifted Lowe’s (LOW) to Overweight from Sector Weight, setting a price target of $266. KeyBanc sees an investment opportunity in Lowe's, labeling it a "high-quality business" ready for patient investors, especially after the recent decline in share value.
RBC Capital has also upgraded Procter & Gamble (PG) to Outperform from Sector Perform, with a revised price target of $177, up from $164. The firm suggests this is an opportune moment for investors to capitalize on Procter & Gamble's stock dip.
In tech, Northland has raised SolarEdge (SEDG) to Market Perform from Underperform, albeit with a reduced price target of $12.50 from $15. Despite a significant decline in shares, Northland forecasts that SolarEdge will end 2025 with about $350 million in net cash, dismissing concerns of potential bankruptcy.
Citi's latest move involved upgrading Hasbro (HAS) to Buy from Neutral, setting a price target of $72. Hasbro has emerged as a surprising beneficiary in the current market environment, according to the firm.
These upgrades reflect varied strategies across sectors, highlighting potential opportunities for investors amidst recent market fluctuations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Align Technology Inc (ALGN, Financial) is $223.97 with a high estimate of $275.00 and a low estimate of $150.54. The average target implies an upside of 23.78% from the current price of $180.94. More detailed estimate data can be found on the Align Technology Inc (ALGN) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Align Technology Inc's (ALGN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Align Technology Inc (ALGN, Financial) in one year is $300.34, suggesting a upside of 65.99% from the current price of $180.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Align Technology Inc (ALGN) Summary page.
ALGN Key Business Developments
Release Date: February 05, 2025
- Total Revenue: $995.2 million for Q4, up 1.8% sequentially and 4% year-over-year.
- Clear Aligner Revenue: $794.3 million for Q4, up 0.9% sequentially and 1.6% year-over-year.
- Systems and Services Revenue: $200.9 million for Q4, up 5.2% sequentially and 14.9% year-over-year.
- Clear Aligner Volume Growth: 6.1% year-over-year for Q4.
- Non-GAAP Operating Margin: 23.2% for Q4, up 1.1 points sequentially.
- Net Income per Diluted Share: $1.39 for Q4, down $0.16 sequentially.
- Cash and Cash Equivalents: $1,043.9 million as of December 31, 2024.
- Free Cash Flow: $263 million for Q4.
- Operating Expenses: $552.8 million for Q4, up 6.4% sequentially.
- Gross Margin: 70% for Q4, up 0.3 points sequentially.
- Capital Expenditures: $23 million for Q4.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Align Technology Inc (ALGN, Financial) reported Q4 total revenues of $995 million, a 4% increase year-over-year, driven by strong growth in Systems and Services revenues.
- Clear Aligner volumes grew 6.1% year-over-year, with notable strength in the EMEA, APAC, and LatAm regions.
- The company achieved several milestones, including 272,000 active Invisalign trained practitioners and 19.5 million Invisalign patients treated.
- Align Technology Inc (ALGN) saw a record number of doctor submitters worldwide, reflecting increased utilization and growth in both adult and teen segments.
- The iTero Lumina scanner launch was successful, with positive feedback from doctors, and plans to expand its capabilities to include restorative workflows.
Negative Points
- Q4 Clear Aligner ASPs were lower than expected due to unfavorable foreign exchange impacts from a stronger U.S. dollar.
- Operating expenses increased by 11% year-over-year, primarily due to restructuring, advertising, and marketing expenses.
- The orthodontic market in North America has been flat for the last three years, impacting growth in that region.
- Align Technology Inc (ALGN) faces potential challenges from new tariffs on shipments from Mexico to the U.S., which could impact costs.
- The company anticipates a decline in Q1 2025 revenues due to foreign exchange impacts and lower capital equipment sales.
