Piper Sandler has adjusted its valuation outlook for Align Technology (NASDAQ: ALGN), raising the firms price target to $220.00 from $200.00 while retaining an Overweight rating in the wake of the companys fourth-quarter results.
The new target sits near InvestingPros Fair Value assessment, which the research note says implies the stock is modestly undervalued at current levels. That assessment follows quarterly results in which Align reported revenue of $1,048 million for the fourth quarter - a 5% increase year over year and a beat versus the Street estimate of $1,033 million.
Revenue strength was broad-based, driven by balanced demand across both teen and adult aligner categories as well as scanner sales. Align posted earnings per share of $3.29 for the quarter, comfortably above the consensus EPS of $2.97. Analysts noted that margins also outperformed models, which supported the stronger-than-expected bottom-line performance.
Looking ahead, Piper Sandler characterized Aligns initial guidance for fiscal 2026 as reasonable. The companys outlook contemplates mid-single-digit growth in case volumes and revenue growth in the range of 3-4%. Piper Sandler argued that the conservative posture in guidance could allow for upside in quarterly results if current aligner demand trends persist.
Markets reacted quickly to the print. Aligns shares rose by roughly 12% in after-hours trading following the earnings release and accompanying analyst commentary, with Piper Sandler noting scope for further outperformance as management continues to deliver topline growth and tighter earnings control.
Additional analyst action tracked by the market also reflected the quarters upside. Align reported fourth-quarter 2025 earnings that beat expectations, with EPS of $3.29 versus the $2.97 consensus and revenue of $1.05 billion versus an anticipated $1.03 billion. The quarter featured a gross margin of 72.0%, noted as the companys highest since the first quarter of 2022, and a 7.7% increase in case volume, the strongest year-over-year case-volume growth since the fourth quarter of 2021.
In response to these results, Stifel raised its price target for Align Technology to $210 from $200 and kept its Buy rating, signaling a broader analyst re-evaluation following the strong operational and financial metrics.
Collectively, the beats on revenue and EPS, the improvement in gross margin, and the meaningful case-volume acceleration framed the recent analyst moves and the immediate market reaction. Aligns guidance approach and the companys ability to sustain current demand trends will be central to whether analysts and investors continue to push valuation assumptions higher.