Bank of America Securities analyst Michael Ryskin reiterated a Sell rating on Illumina (ILMN – Research Report) today and set a price target of $90.00.
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Michael Ryskin has given his Sell rating due to a combination of factors that suggest potential downside risks for Illumina’s stock. Currently trading at $100, Illumina’s shares have seen a significant 25% decline recently, contrasting with the broader market trends. Historically, this price level has been a support point for the stock, but Ryskin warns that current conditions might prevent a repeat of past rebounds.
Ryskin points to several challenges that could impact Illumina’s future performance. These include anticipated flat revenues for FY25 which do not consider recent indirect funding cuts to the NIH, the company’s inclusion on a blacklist in China, and potential increased competition from Roche in the next-generation sequencing market. He outlines a negative scenario where sales could decline by 10% and earnings per share could suffer a more severe drop of up to 25%. Given these risks and uncertainties, Ryskin has adjusted his price objective to $90, reflecting a cautious outlook on the stock’s valuation range.
In another report released on February 10, Barclays also downgraded the stock to a Sell with a $100.00 price target.