Barclays analyst Steve Valiquette views the key focus of Align Technology's Q4 report as its 2019 outlook, which he says sees higher operational spending to achieve the same 25% sales growth that is already baked into consensus. Investors historically are more willing to accept annual operational spending volatility in med tech companies, as long as there is visibility that it translates into continued organic revenue hyper-growth, Valiquette tells investors in a post-earnings research note titled "Sales Growth Should Still Trump EPS." He believes Align fits this criteria, noting the company's Invisalign franchise is still only 10% penetrated into worldwide orthodontic case starts. As such, the analyst thinks most investors should look past 2019 earnings reduction, "as it makes sense operationally" for Align "to play offense in the 'clear aligner land grab' from traditional metal braces." Valiquette lowered his price target for Align Technology to $260 from $275 and keeps an Overweight rating on the name.

HSBC raised the firm's price target on Align Technology to $370 from $350 and keeps a Buy rating on the shares. The analyst says the stock's valuation multiple discount and muted expectations tilt the risk/reward balance to the upside with potential upgrades to estimates.