Align Technology ALGN Short Thesis May 2016

Kyle McAndrews presents a short investment thesis on Align Technology (ALGN), arguing the stock is overvalued at $79 with a target price of $45. The thesis contends that ALGN's 15-25% organic growth guidance is unsustainable, patent protection is eroding, and competitive pressures will lead to market share loss and pricing pressure in the clear aligner orthodontic market.