J.P. Morgan analyst Rachel Vatnsdal has maintained their neutral stance on ILMN stock, giving a Hold rating on June 10.
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Rachel Vatnsdal’s rating is based on several factors surrounding Illumina’s recent acquisition of SomaLogic. The acquisition is expected to enhance Illumina’s capabilities in the proteomics field by integrating SomaLogic’s technology with Illumina’s existing systems. However, the financial details of SomaLogic remain somewhat unclear, with limited information on its revenue projections for 2024. Despite this, the acquisition is anticipated to contribute positively to Illumina’s growth, although it might slightly dilute earnings per share in 2026.
Additionally, while the acquisition positions Illumina more robustly within the competitive proteomics market, the market itself is still evolving. SomaLogic’s end markets, particularly in pharma services, are growing, but the exact timing of revenue contributions from new high-margin consumables remains uncertain. These factors contribute to a cautious outlook, leading to a Hold rating as the market dynamics and financial impacts of the acquisition continue to unfold.
In another report released on June 10, Canaccord Genuity also reiterated a Hold rating on the stock with a $99.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ILMN in relation to earlier this year.