Why This Illumina Analyst Is Bullish About NovaSeq X+

Illumina, Inc.’s ILMN NovaSeq X Plus is likely to become “the ultimate genome machine,” lending upside in 2024 and beyond, according to SVB Securities.

The Illumina Analyst: Puneet Souda upgraded the rating for Illumina from Market Perform to Outperform, while raising the price target to $270.

The Illumina Thesis: NovaSeq X Plus could become the instrument of choice “as both the clinical and research end-markets pivot from panels and exomes to whole genomes, while the backdrop of MRD and cancer screening samples only grows,” Souda said in the upgrade note.

Check out other analyst stock ratings.

This product could catalyze the transition over the next three to four years and generate $1.5 million to $1.8 million, “with strong X+ installs replacing the existing 1500 high volume NovaSeq 6k and bringing in new customers,” the analyst added.

Illumina served a total addressable market of $120 billion and was “about to benefit from major expansion in its latest HT cycle,” he further mentioned.

ILMN Price Action: Shares of Illumina had risen by 9.47% to $204.97 at the time of publication Tuesday.