Hold Rating for Illumina Amid Geopolitical and Competitive Challenges

J.P. Morgan analyst Rachel Vatnsdal has maintained their neutral stance on ILMN stock, giving a Hold rating on February 3.

Rachel Vatnsdal has given her Hold rating due to a combination of factors impacting Illumina’s position in the market. The recent addition of Illumina to China’s ‘Unreliable Entity List’ has created uncertainty regarding the company’s ability to conduct business in China, a region that contributes a significant portion of their revenue. This development is seen as a response to U.S. legislative actions affecting Chinese relations, and it introduces potential challenges for Illumina’s future growth in this key market.
Despite Illumina’s previous guidance predicting modest revenue growth for 2025, the unexpected regulatory environment in China poses an additional risk to achieving these projections. The company’s competitive landscape, especially with rivals like MGI/BGI, combined with macroeconomic uncertainties, further complicates the outlook. Therefore, while acknowledging the potential for growth, these challenges have led to a conservative Hold rating as investors await more clarity on the implications of these geopolitical tensions.

In another report released on February 3, Barclays also maintained a Hold rating on the stock with a $130.00 price target.