Illumina (ILMN) won the support of the higher Court of Justice of the European Union (CJEU) in a long-standing battle with the European Commission (EC) related to its Grail acquisition. The American gene sequencing company was at loggerheads with the EC, which probed the acquisition without having the apt jurisdiction to investigate it.
Illumina Wins Fight Against EC
The CJEU said that the EC is not authorized to probe cases of companies that do not have any EU presence nor generate significant revenues in the bloc. The EC investigated Illumina’s $7.1 billion acquisition of the cancer diagnostic test maker and forced it to divest Grail in June this year.
The CJEU’s support means a big win for Illumina, as its decision supersedes the EC’s verdict and cannot be appealed. Also, Illumina will no longer have to pay the €432 million fine levied upon it by the EC. Unfortunately, Illumina already bowed to EC’s pressure and divested Grail but still holds a 14.5% stake in the company.
Hedge Funds Load Up ILMN Stock
Despite the legal hassles with the EC, Hedge funds continued to be optimistic about Illumina stock and increased their holdings of ILMN shares by 2.4 million in the last quarter. According to TipRanks’ Hedge Fund Trading Activity tool, ILMN has a Very Positive Hedge Fund Confidence Signal.
Is Illumina a Good Stock to Buy?
Unlike hedge funds, Wall Street is divided on Illumina stock’s trajectory amid the ongoing challenges. On TipRanks, ILMN stock has a Moderate Buy consensus rating based on 13 Buys, eight Holds, and one Sell recommendation. Also, the average Illumina stock price target of $148.32 implies 12.9% upside potential from current levels. Shares have declined 2.9% so far this year.
