Align Tech Straightening Out

Align Technology, Inc. (ALGN - Analyst Report), founded in 1997, is engaged in the design, manufacture, and marketing of Invisalign, a proprietary system for treating malocclusion, or crooked teeth. The Invisalign product has two components, ClinCheck and Aligners. Aligners are thin, clear-plastic, removable dental appliances that are manufactured in a series to correspond to each two-week stage of the Internet-based ClinCheck simulation.

Reiterating Hold rating. We believe a difficult U.S. economy and higher marketing expenses will hamper top-line growth and margins. Strong international growth and foreign exchange gains will help offset this.

In the near-term, we think earnings quality could become an issue as management finds it difficult to meet growth targets. Meaningful earnings growth will be pushed out FY10.

Rajarshi Maulik contributed to this report.

Read the full analyst report on ALGN

Read the full analyst report on ALGN