Align's New Direct-To-Consumer Focus Earns It A Higher Price Target From Stifel

Earlier this month, Invisalign maker Align Technology, Inc. ALGN beat on both top- and bottom-line Q3 estimates, and shares have been up around 10 percent since.

Stifel analyst Jonathan Block increased his price target for the stock from $95 to $110, representing a 15 percent upside from where the stock is currently trading and maintains a Buy rating on the issue. The analyst’s key thesis is that after years of investing direct-to-consumer, Align is poised to monetize its investment by altering its approach and, notably, its relationship with providers.

In essence, Block sees Align taking more “ownership” over prospective patients as a means of avoiding the “bait and switch” tactics practiced by some providers.

“Providers who are committed to Invisalign will be rewarded with leads,” said Block. “Those who bait and switch (even if they are currently top providers) will see leads rerouted.” In addition, Block noted two new products will be introduced soon, which will expand the company’s “reach in the Teen market,” as well as significant international growth opportunities.