Leerink Partners analyst Puneet Souda has maintained their bullish stance on ILMN stock, giving a Buy rating on February 21.
Puneet Souda has given his Buy rating due to a combination of factors influencing Illumina’s market position and potential for growth. Although Roche’s new Sequencing By Expansion (SBX) technology presents a promising competitor, its full impact on Illumina’s clinical markets is considered negligible in the short term. This is because the clinical portion of next-generation sequencing (NGS) costs is currently low and expected to decline further over the next few years.
Despite the potential competition from Roche’s SBX technology, which may affect the research segment, Illumina’s stronghold in the clinical market is seen as a significant advantage. The expected delayed entry of SBX into clinical applications and the current focus on research markets suggest that Illumina’s core business remains robust. Therefore, Illumina’s strong market position and the durability of its business in the face of emerging technologies are central to Souda’s Buy rating.
In another report released on February 21, RBC Capital also maintained a Buy rating on the stock with a $247.00 price target.