Align Technology’s shares drop after Goldman Sachs downgrade

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Align Technology’s ($NASDAQ:ALGN) shares dropped by 5% in the pre-market after Goldman Sachs downgraded the company from a Buy to a Sell. The downgrade was based on concerns over growth in a challenging macro environment. The analysts at Goldman Sachs believe that the recovery in growth may lag company expectations, and have slashed their price target to $250 per share. This could continue to affect Align Technology’s market and earnings in the long term.

Market Reaction

On Thursday, shares of Align Technology opened at $270.6 and closed at $282.2, a 7.5% increase from the previous closing price of $262.6.

However, this was not enough to prevent a drop in the stock after Goldman Sachs downgraded the company.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on ALIGN TECHNOLOGY are made simple by VI app. According to VI Risk Rating, ALIGN TECHNOLOGY is a low risk investment in terms of financial and business aspects.

However, there are some potential risks in the business and financial areas which you may check out in our website.

Summary

Align Technology is a leading manufacturer of dental and orthodontic products, including the popular Invisalign system. The company’s products are in high demand, and its shares have surged in recent years.

However, some investors are concerned that the stock is now overvalued. Goldman Sachs downgraded the stock from “buy” to “neutral” on Monday, saying that it expects “shares to modestly underperform the market.” Despite the downgrade, shares of Align Technology rose 7.5% on Tuesday as investors appeared to shrug off the news.