Align Technology (ALGN)
Align Technology (<a href=http://www.zacks.com/stock/quote/algn>ALGN</a>) is engaged in the design, manufacture, and marketing of a proprietary system, Invisalign, for the treatment of crooked teeth. The company's business fundamentals are negatively affected by the current economic turbulence. <p> As such, we expect revenue to decline in FY09. Furthermore, we think that the earnings quality could become an issue as management finds it difficult to meet growth targets. <p> We are recommending a Sell rating for this stock. We think that the shares deserve to trade at 10% discount to the comparable mean. This equates to a P/S multiple of approximately 2.0x and to a target price of $8.80.
May 28, 2009 | Filed Under Stocks to Sell
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