Align Upgraded to Neutral - Analyst Blog
February 20 2013 - 10:00AM
Zacks
We recently upgraded Align
Technology (ALGN) to Neutral based on its encouraging
fourth-quarter 2012 results and huge opportunities in the
malocclusion market. Banking on its core product Invisalign, the
company witnessed balanced sales growth across all its channels.
The stock currently carries a Zacks Rank #3 (Hold).
Why the
Upgrade?
Align exited 2012 on an encouraging
note with its fourth-quarter results sailing past the expectations.
Align's Invisalign Clear Aligner has helped the company establish
itself as a strong player in the malocclusion market.
Over the past few quarters, sales
have increased consistently due to the strength of this product.
Moreover, several features have been introduced across the
Invisalign system, designed to address some of the most significant
treatment challenges encountered by doctors. The company’s
Invisalign G3 and G4 are working successfully for its class II and
class III patients.
According to the company’s recent
study, over 99% of the Ortho and GP dentists in the U.S. are aware
of G4. Moreover, we are encouraged with the recent launch of the
next generation liner material SmartTrack for Invisalign Clear
Aligner and feature enhancements of Invisalign G4, particularly in
Europe. These features are working as major catalysts in
strengthening the company's foothold in the huge teenage
orthodontic market. Rising earnings estimates as well as a product
with great appeal and untapped potential in the malocclusion market
make us optimistic about Align.
Other Stocks to
Consider
While we prefer to remain on the
sidelines on Align Technology, other medical device stocks worth a
look are Medical Action Industries Inc. (MDCI),
Given Imaging Ltd. (GIVN) and ResMed
Inc. (RMD). All these stocks carry a Zacks Rank #1 (Strong
Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis Report
GIVEN IMAGING (GIVN): Free Stock Analysis Report
MEDICAL ACTION (MDCI): Free Stock Analysis Report
RESMED INC (RMD): Free Stock Analysis Report
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