- Thanks to the digital shift and pandemic-driven behavioral changes, Align has made a rapid recovery from a sharp contraction.
- The consensus estimates suggest a record revenue for the next 12-month period, and the shares, in terms of forward earnings, trade at a sizable premium to the historical average.
- The resurging pandemic can threaten the heady valuation as the proacted battle over another round of stimulus pressures consumer spending.
- Yet, with a strong balance sheet, and a renewed focus on digitalization, the company is well-positioned to access a highly underserved market.
- Despite near-term headwinds, we, therefore, believe Align is a ‘Hold’ for long-term investors.
For further details see:
Align Technology: Pandemic Is A Double-Edged Sword