Leerink Partners analyst Puneet Souda has maintained their bullish stance on ILMN stock, giving a Buy rating on June 23.
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Puneet Souda’s rating is based on a combination of strategic and financial considerations. Illumina’s acquisition of SomaLogic is seen as a move to enhance its product offerings, particularly in the proteomics market. Despite SomaLogic being a distant second to Olink, the acquisition is expected to allow Illumina to accelerate the launch of new products and expand its reach in the pharmaceutical sector, which currently represents a small portion of its revenue.
Furthermore, management anticipates that owning SomaLogic’s intellectual property will enable Illumina to integrate the technology into its spatial and single-cell offerings. While the acquisition may initially dilute earnings per share by 1-2%, profits are expected to turn positive by 2027, with margins reaching Illumina’s average by 2028. These strategic benefits and future financial improvements underpin Souda’s Buy rating for Illumina’s stock.
Souda covers the Healthcare sector, focusing on stocks such as Quanterix, Bruker, and Exact Sciences. According to TipRanks, Souda has an average return of -10.8% and a 32.01% success rate on recommended stocks.
In another report released on June 23, Piper Sandler also maintained a Buy rating on the stock with a $185.00 price target.