Stifel raised its price target on Align Technology (NASDAQ:ALGN) to $210.00 from $200.00 on Thursday and maintained a Buy rating on the dental products company. The firm highlighted stronger-than-expected operational metrics late in 2025 and signaled confidence that those trends can carry into 2026.
Valuation context - Stifel's revised objective sits below the highest analyst target of $225 tracked by InvestingPro, while the stock was trading at $161.30. InvestingPro's Fair Value assessment indicates Align appears undervalued even with the company trading at a P/E ratio of 31.46.
Operational momentum - Stifel pointed to case volume growth of 7.7% in the fourth quarter of 2025, which the research firm noted was Align's strongest quarterly performance since the fourth quarter of 2021. The company also reported a 72.0% gross margin for the quarter, its best since the first quarter of 2022, contributing to a trailing twelve-month gross profit margin of 69.25%.
Geographic performance was described as broadly positive. Asia-Pacific and EMEA recorded double-digit case growth for a second consecutive quarter. North America showed sequential improvement for the second straight quarter, although independent results there remained down on a year-over-year basis.
Those operating gains correspond with a 15.5% price return for the stock over the past six months, as tracked by InvestingPro. Stifel characterized Align's guidance for 2026 as "prudent" and said it saw potential upside, particularly given momentum that accrued during the second half of 2025.
The research note also called out new initiatives and product introductions, including MAOB, that Stifel expects should gain traction during 2026. Based on its analysis, the firm suggested Align could achieve mid-single-digit percentage comparable growth in 2026, which Stifel said would be consistent with a stock price in the $205-215 range.
Quarterly results - Align reported fourth-quarter 2025 earnings that exceeded analyst estimates. The company posted an EPS of $3.29 versus the $2.97 forecast. Revenue in the quarter reached $1.05 billion, ahead of the anticipated $1.03 billion. These results underline the stronger financial performance referenced by Stifel.
Analyst activity and market reaction - At the time of the note, analyst firms had not issued recent upgrades or downgrades for Align, according to the information provided. Stifel's upgrade to its price target and maintenance of a Buy rating reflect the firm's view that near-term operational gains and product rollouts could support further upside.
Investors watching Align's financial health may place particular focus on the combination of case volume growth and elevated gross margins that helped the company exceed expectations in the most recent quarter. Stifel's outlook ties those performance measures to a mid-single-digit comparable growth forecast for 2026 and a corresponding price band in the low- to mid-$200s.
Bottom line - Stifel's move to a $210 target reflects firm-level confidence in continued momentum from the back half of 2025, supported by geographic recovery, margin expansion, and new product initiatives that the firm expects to contribute in 2026. The stock's current trading level, InvestingPro's high target, and the firm's fair value assessment form the valuation backdrop for Stifel's call.