Leerink Partners analyst Puneet Souda has maintained their bullish stance on ILMN stock, giving a Buy rating on March 11.
Puneet Souda has given his Buy rating due to a combination of factors including Illumina’s strategic cost-saving measures and their ability to adapt to challenging market conditions. Despite the reduction in 2025 EPS guidance to $4.50, which reflects the impact of China’s UEL decision, Illumina is implementing $100 million in additional cost-saving initiatives. These measures are expected to optimize stock-based compensation and non-labor spending while accelerating productivity globally, which could help offset the adverse effects from China.
Furthermore, Illumina’s management has shown resilience by continuing commercial operations and negotiations in China despite the ban on sequencer imports. They have also indicated readiness to adjust their cost structure in China if necessary. Although there are uncertainties such as NIH headwinds, Souda sees the revised EPS guidance as an upside relative to current assumptions, supporting a positive outlook on Illumina’s stock.
Souda covers the Healthcare sector, focusing on stocks such as Illumina, Natera, and Castle Biosciences. According to TipRanks, Souda has an average return of -14.1% and a 27.88% success rate on recommended stocks.
In another report released on March 11, RBC Capital also maintained a Buy rating on the stock with a $128.00 price target.
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