Morgan Stanley analyst Tejas Savant has maintained their neutral stance on ILMN stock, giving a Hold rating on May 9.
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Tejas Savant has given his Hold rating due to a combination of factors impacting Illumina’s performance. The company’s first-quarter revenue was in line with expectations, with strong instrument sales, particularly the NovaSeq X, offsetting weaker demand for research market consumables. However, the ban on Illumina sequencer sales by the Chinese Ministry of Commerce and the resulting decline in revenue from China have posed challenges.
Despite the solid performance in instrument sales, the overall outlook remains cautious due to the anticipated impact of tariffs and a decline in academic and government customer demand. While Illumina’s valuation is not considered demanding, the key to potential upside lies in the visibility of top-line reacceleration. These factors combined have led to a Hold rating, as the company navigates through these headwinds while implementing cost-cutting measures to mitigate the financial impact.
In another report released on May 9, TD Cowen also maintained a Hold rating on the stock with a $89.00 price target.