UPDATE: Auriga Color On ILMN Upgrade

Auriga, which upgraded shares of Illumina Inc. ILMN, is providing some color on the stock. “Post-earnings, Illumina shares drifted lower as worries about demand within Genome Wide Association Studies (GWAS), a convertible offering, and profit-taking all weighed,” Auriga writes. “Importantly, our checks suggest demand for ILMN's next generation DNA sequencing systems (NGS) remains strong as current and pending projects, and broadening customer base all bode well for continued underlying demand. “In turn, ILMN's large installed base and ever-increasing throughput should drive strong consumables pull through in 2011. Given our expectations that the broadening adoption of NGS technology by molecular biologists is a multi-year cycle, we view the current share price as an attractive entry point.” Illumina closed Friday at $65.45.