Illumina: Weak Backlog Support and Rising Competitive Pressures Undermine 2026 Outlook, Justifying Sell Rating

Analyst Michael Ryskin of Bank of America Securities maintained a Sell rating on Illumina, boosting the price target to $85.00.

Michael Ryskin has given his Sell rating due to a combination of factors tied to Illumina’s backlog and demand outlook. He notes that while the year-end backlog of $738 million is slightly higher than a year ago, it remains far below prior-cycle peaks and has not shown a convincing, sustained rebound, signaling ongoing softness in customer orders and end-market demand.

Ryskin also highlights that only about 13% of expected 2026 revenue is currently supported by firm backlog, with roughly $568 million anticipated to ship next year, leaving limited buffer against guidance risk. In his view, lengthening customer evaluation cycles and rising competitive threats could further pressure ordering patterns, constraining visibility and increasing the likelihood that future targets prove difficult to achieve.

In another report released on February 6, Barclays also maintained a Sell rating on the stock with a $110.00 price target.

Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ILMN in relation to earlier this year.