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NEW YORK (TheStreet) -- Orthodontic technology developer Align Technology (ALGN) received a Cantor Fitzgerald upgrade to "buy" from "hold" with a price target of $60 from $42 on "improved volume and pricing trends. Analyst Jeremy Feffer said strong third-quarter results and forward guidance "allay many of our concerns."

For the third quarter ended Sept. 30, the Invisalign developer recorded net profit of $34.5 million, or 42 cents a share, on a 20.5% year-on-year increase to revenue of $164.5 million. The company gave fourth-quarter guidance of a 21% to 24% increase in volume growth and 27% to 30% in revenue growth.

JMP Securities reiterated a "market outperform" rating and raised its price target to $64 from $47. "We continue to recommend building a position in ALGN shares, given the introduction of new products (e.g. SmartTrack, Realine), its expanding global distribution, strong consumer demand, and an underpenetrated market," the investment firm wrote.

Shares soared 26.3% to $57.95 by market close on Friday. Unusually, share prices rallied 5.1% on Thursday as of market close and before the company had reported third-quarter figures.

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TheStreet Recommends

TheStreet Ratings team rates Align Technology as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate Align Technology (ALGN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Written by Keris Alison Lahiff.