Illumina Analyst Optimistic On Company's Prospects For 'Accelerated Growth'

Illumina, Inc. ILMN has come to loggerheads with EU antitrust regulators related to their investigation into the $7.1 billion acquisition of Grail.

Although the company faces near-term headwinds, its strong positioning in the large Next Generation Sequencing (NGS) market could propel growth in the longer term, according to Stephens.

The Illumina Analyst: Mason Carrico initiated coverage of Illumina with an Overweight rating and a price target of $170.

The Illumina Thesis: The company is poised for growth acceleration “in coming years,” given its comprehensive (NGS) portfolio and its strong position in clinical oncology, a segment that is “expected to be the driver of market growth going forward,” Carrico said in the initiation note.

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Illumina is likely to be “a significant beneficiary of the continued growth in the sequencing as it allows the Company to capture sequencing dollars across the entire market,” the analyst wrote.

“We think the story gets cleaned up over the next 12 months (NovaSeq ramp, Grail divestiture), and looking into 2025, we believe ILMN will be positioned to accelerate revenue growth while throwing off significantly more cash than it does today,” Carrico stated. “As we progress through 2024, we think that begins to increasingly be factored into shares,” he added.

ILMN Price Action: Shares of Illumina had risen by 6.03% to $134.31 at the time of publication on Wednesday.

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