HSBC downgrades Illumina on China headwinds, funding cuts

HSBC downgraded Illumina (ILMN) to Hold from Buy with a price target of $100, down from $190. The shares are down 33% year-to-date amid new headwinds from China, potential funding cuts, and competition, the analyst tells investors in a research note. The firm sees a threat to Illumina’s structural growth from more competition and pricing challenges. China has put Illumina on an unreliable entity list as part of the response to the Trump administration’s tariffs, and any resulting sanctions on the company could impact .7% of the company’s revenue, according to HSBC. In addition, the firm says potential cuts in National Institute of Health budgets could impact Illumina’s early stage research and academic customers in terms of purchase postponements or cuts altogether.