After a Fresh Look, We Are Lowering Narrow-Moat Align's FVE to $311; Shares Still Attractive

After reviewing our key valuation assumptions, we have lowered our fair value estimate for Align to $311 per share from $331, due to our slightly lower long-term revenue growth projection. Despite our updated valuation, we have maintained Align’s narrow moat and stable trend rating. We assign Align Technology a narrow moat because we believe the company’s strong brand recognition and technically advanced products (intangibles) lead to market dominance and pricing premium, and doctors unwillingness to move to a different product (switching costs) should continue to support economic profits for at least the next 10 years.