Morgan Stanley initiated coverage of ALGN with an "overweight" rating
Align Technology, Inc. (NASDAQ:ALGN) is surging, up 4.1% to trade at $482.93 at last check, after Morgan Stanley initiated coverage of the security with an "overweight" rating, citing the dental market's recovery from pandemic disruptions. In addition, ALGN received an upgrade from UBS to "buy" from "neutral," though the brokerage lowered its price target to to $620 from $800, while Piper Sandler slashed its objective to $740 from $825.
Analysts were already bullish towards ALGN coming into today. In fact, all but one of the eight in coverage called the stock a "strong buy." What's more, the 12-month consensus target price of $704.83 is a 43.7% premium to current levels.
Align Technology stock has experienced some volatility since its Sept. 23, record high of $737.45. The shares pivoted lower in late December, slipping firmly below the 20-day moving average in January, before finding a floor near the $450 area. Year-to-date, ALGN has shed 25.4%.
The options pits are firmly bearish, according to the security's 50-day put/call volume ratio of 1.10 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 83% of readings from the last year, and indicates puts have rarely been more popular.