Analyst Michael Ryskin of Bank of America Securities reiterated a Sell rating on Illumina, boosting the price target to $75.00.
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Michael Ryskin has given his Sell rating due to a combination of factors surrounding Illumina’s performance and future outlook. Despite a positive second-quarter sales report and an increase in adjusted EPS, the raised full-year guidance is considered of ‘low quality.’ This is primarily because a significant portion of the sales increase is attributed to expectations from China, where the market situation remains uncertain, and favorable foreign exchange rates.
Additionally, there are concerns about the slower-than-expected transition to the NovaX platform, which is now anticipated to meet targets by the end of 2025 rather than the second half of the year. The reliance on Nova6000 for achieving fiscal year 2025 numbers, instead of NovaX, raises skepticism about the company’s strategic direction. These factors, coupled with a steep fourth-quarter ramp assumption, contribute to the reiterated Underperform rating and a lowered price objective of $75.
In another report released today, Barclays also maintained a Sell rating on the stock with a $90.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ILMN in relation to earlier this year.