Illumina’s Financial Outlook: Hold Rating Amidst Export Bans and Tariff Challenges

Analyst Patrick B Donnelly of Citi maintained a Hold rating on Illumina (ILMN – Research Report), retaining the price target of $85.00.

Patrick B Donnelly has given his Hold rating due to a combination of factors impacting Illumina’s financial outlook. The company reported first-quarter revenues slightly above expectations, but management lowered guidance due to challenges such as the exclusion of China from their market due to export bans and the impact of tariffs, which are expected to affect operating margins.
Despite some positive elements like the expected ramp-up in consumables and pricing actions in the second half of the year, the overall financial guidance reflects a cautious outlook. The anticipated decline in full-year revenues and earnings per share, driven by reduced revenues from China and academic funding headwinds, contributes to the Hold rating. These factors suggest that while there are growth opportunities, significant risks remain, warranting a neutral stance on the stock.

According to TipRanks, B Donnelly is a 2-star analyst with an average return of 0.0% and a 43.64% success rate. B Donnelly covers the Healthcare sector, focusing on stocks such as Danaher, Illumina, and Agilent.