Morgan Stanley is raising its target on Illumina, Inc. ILMN to $78 and continue to like the stock for 2011.
“There are three keys to our positive thesis,” Morgan Stanley writes. “1) an emerging and underappreciated margin leverage story with Illumina on track to roughly double earnings in two years, 2) support for the multiple from continued HiSeq strength and potential for sustained microarray reacceleration (~40% of revenue) in 2011+, and 3) new product introductions over the next 12-24 months in microarrays and sequencing.”
Morgan Stanley is raising its estimates modestly for 2011+.
“Our target rises as we roll our valuation to ~39x our 2012e EPS of $1.96 or a PEG of 1.2x, in line with growth companies in the MS universe and supported by the MS What's in the Price that implies reasonable 6-7% long term growth,” Morgan Stanley adds.
Illumina currently trades at $66.94.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in