We Find Align’s Current Valuation As An Attractive Entry Point, Says Roth Capital

In a research note issued today, Roth Capital analyst Chris Lewis reiterated a Buy rating on Align Technology (ALGN) with a $66 price target, following ALGN’s second quarter earnings results.

Lewis wrote, “ALGN reported a 2Q beat; we expect inline 3Q guidance, versus arguably aggressive Street expectations, should alleviate some market concerns. We believe ALGN will continue to deliver substantial revenue growth driven by Teen in 3Q, and look for 2H14 to highlight ALGN’s operating leverage and earnings power”. He continued, “Given achievable 2H14 expectations, a growing cash balance, and the Street’s increasing shift to FY15 metrics, we find ALGN’s current valuation of 23x our potentially conservative FY15 EPS (EV basis) as an attractive entry point”.

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Chris Lewis currently has an average return of -3.9% and a 39% success rate. Lewis has a 15.5% average return when recommending ALGN, and is ranked #2897 out of 3223 analysts.

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