Illumina (ILMN – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Ryskin from Bank of America Securities maintained a Sell rating on the stock and has a $110.00 price target.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Michael Ryskin has given his Sell rating due to a combination of factors indicating downside risks for Illumina. A key concern is the company’s current backlog, which stands at $657 million, reflecting a stagnant year-over-year position and marking the lowest level since 2016. Historically, Illumina’s backlog has averaged around $950 million from 2017 to 2022, suggesting a significant decrease in order volume and a potential challenge in meeting future sales expectations.
Additionally, the quality of the backlog has deteriorated, with only 78% expected to ship in the next 12 months, compared to about 90% in previous years. This implies that the firm has fewer confirmed orders for the upcoming year, covering less than 12% of the anticipated revenues for 2025. The combination of these factors, alongside structural, competitive, and market challenges, leads Ryskin to maintain a pessimistic outlook on Illumina’s stock performance.
In another report released on February 10, Barclays also downgraded the stock to a Sell with a $100.00 price target.