Leerink Partners analyst Puneet Souda has maintained their bullish stance on ILMN stock, giving a Buy rating on May 28.
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Puneet Souda has given his Buy rating due to a combination of factors that highlight Illumina’s strong position in the sequencing market. One significant aspect is the company’s robust revenue stream from sequencing consumables, with a substantial portion coming from clinical customers. This indicates a stable and recurring income base, which is crucial for long-term growth.
Additionally, Illumina’s shares are currently trading at historically low multiples, presenting a potential value opportunity for investors. Despite emerging competition, such as the anticipated Axelios platform, Illumina’s established presence and the high expectations already factored into its stock price suggest that it remains a solid investment choice. Furthermore, while there are challenges like NIH headwinds and potential market share losses in China, these are considered manageable within the broader context of Illumina’s market leadership and innovation capabilities.
In another report released on May 28, Stifel Nicolaus also reiterated a Buy rating on the stock with a $135.00 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.