Citi analyst Patrick B Donnelly has reiterated their neutral stance on ILMN stock, giving a Hold rating on February 4.
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Patrick B Donnelly’s rating is based on a combination of factors including Illumina’s recent financial performance and market conditions. The company’s reported revenues for the fourth quarter were in line with expectations, but there was a notable shortfall in sequencing consumables revenues, which fell below projections and declined sequentially by approximately 6%. This decline in a key revenue segment has introduced uncertainty about the company’s near-term financial performance.
Additionally, Illumina faces potential risks stemming from its inclusion in China’s “unreliable entity” list, which has not been factored into the company’s guidance and could have negative implications. The company’s guidance for the first quarter of 2025 indicates flat to slightly declining revenue and operating margins below consensus estimates, contributing to a cautious outlook. These elements, combined with the uncertainty around market trends and geopolitical risks, have led to the decision to maintain a Hold rating with a revised target price of $130, reflecting the increased uncertainty and adjusted expectations.
B Donnelly covers the Healthcare sector, focusing on stocks such as Illumina, Agilent, and Danaher. According to TipRanks, B Donnelly has an average return of 2.5% and a 47.88% success rate on recommended stocks.