Citi cuts Illumina target, places on ‘negative catalyst watch’
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 04 2025
0mins
Should l Buy ILMN?
Source: Business Insider
Citi's Price Target Adjustment: Citi has reduced Illumina's price target from $130 to $90 while maintaining a Neutral rating, citing multiple challenges the company is facing, including being placed on China's "unreliable entities" list.
Impact of China on Revenue: The firm highlights that China accounts for 7% of Illumina's total revenue and remains a crucial market despite recent developments affecting the company's operations.
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Analyst Views on ILMN
Wall Street analysts forecast ILMN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ILMN is 124.12 USD with a low forecast of 40.50 USD and a high forecast of 195.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
4 Buy
6 Hold
3 Sell
Hold
Current: 134.190
Low
40.50
Averages
124.12
High
195.00
Current: 134.190
Low
40.50
Averages
124.12
High
195.00
About ILMN
Illumina, Inc. is engaged in providing sequencing-and array-based solutions for genetic and genomic analysis. Its products and services serve customers in a range of markets, enabling the adoption of genomic solutions in research and clinical settings. Its DNA sequencing technology is based on its reversible terminator-based sequencing chemistry, referred to as sequencing by synthesis biochemistry. Its BeadArray technology combines microscopic beads and a substrate in a manufacturing process to produce arrays that can perform many assays simultaneously. Its sequencing applications include whole-genome sequencing kits, which sequence entire genomes of any size and complexity, and targeted resequencing kits, which can sequence exomes, specific genes, RNA or other genomic regions of interest. Its customers include genomic research centers, academic institutions, government laboratories, hospitals, pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Expectations: The anticipated revenue for Q4 is $1.11 billion, representing a modest 0.9% year-over-year growth, which, while small, demonstrates the company's stable performance in the market and may attract investor interest.
- Historical Performance Review: Over the past two years, Illumina has exceeded EPS and revenue estimates 88% of the time, a strong historical performance that could bolster market confidence ahead of the earnings report.
- Revision Trends: In the last three months, EPS estimates have seen 9 upward revisions with no downward adjustments, while revenue estimates experienced 10 upward revisions and 4 downward, indicating analysts' optimistic outlook on Illumina's future performance.
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- Application of Multiomic Technologies: This collaboration will utilize multiomic technologies to provide researchers with deeper insights into wildlife medicine, evolutionary biology, and biodiversity preservation, thereby offering scientific foundations for addressing species endangerment and enhancing ecological resilience.
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- Application of Multiomic Technologies: This collaboration will integrate cutting-edge multiomic technologies to help researchers gain deeper insights into wildlife medicine, evolutionary biology, and biodiversity preservation, thereby enhancing the capacity to protect endangered species.
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- Technological Integration: This acquisition combines SomaLogic's proteomics technology with Illumina's high-throughput sequencing platforms, enabling customers to rapidly generate rich multiomic datasets, thereby accelerating drug discovery processes and improving patient health outcomes.
- Market Growth Potential: By enhancing its competitive edge in the rapidly growing proteomics market through this acquisition, Illumina is poised to attract more customers and drive future revenue growth by offering a broader range of technologies and services.
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- Earnings Announcement Date: Illumina (ILMN) is set to release its Q4 2023 earnings on February 5th after market close, with a consensus EPS estimate of $1.25, reflecting a 31.6% year-over-year increase, indicating ongoing improvements in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $1.11 billion, representing a modest 0.9% year-over-year growth, which, while small, demonstrates the company's stable performance in the market and may attract investor interest.
- Historical Performance Review: Over the past two years, Illumina has exceeded EPS and revenue estimates 88% of the time, a strong historical performance that could bolster market confidence ahead of the earnings report.
- Revision Trends: In the last three months, EPS estimates have seen 9 upward revisions with no downward adjustments, while revenue estimates experienced 10 upward revisions and 4 downward, indicating analysts' optimistic outlook on Illumina's future performance.
See More
Illumina Partners with San Diego Zoo for Genomic Sequencing of Endangered Species
- Genomic Sequencing Partnership: Illumina has entered into an agreement with the San Diego Zoo Wildlife Alliance to sequence 4,000 unique animal samples across 1,300 species, aiming to leverage 50 years of preserved biological samples to enhance global species conservation efforts.
- Application of Multiomic Technologies: This collaboration will utilize multiomic technologies to provide researchers with deeper insights into wildlife medicine, evolutionary biology, and biodiversity preservation, thereby offering scientific foundations for addressing species endangerment and enhancing ecological resilience.
- Global Conservation Network: The San Diego Zoo Wildlife Alliance is partnering with the International Union for Conservation of Nature as a Center for Species Survival, using Illumina's genomic data to advance global species protection and management decisions, showcasing the critical value of genomic sequencing in conservation efforts.
- Long-term Impact: This collaboration not only represents a scientific expansion of the Frozen Zoo but also lays the groundwork for the next 50 years of biodiversity conservation, ensuring that scientists can effectively utilize biobanked samples to combat species extinction crises.
See More
Illumina Partners with San Diego Zoo for Genomic Sequencing of Endangered Species
- Genomic Sequencing Partnership: Illumina has entered into an agreement with the San Diego Zoo Wildlife Alliance to sequence 4,000 unique animal samples across 1,300 species, aiming to leverage this data to address global species conservation challenges and promote ecological resilience.
- Application of Multiomic Technologies: This collaboration will integrate cutting-edge multiomic technologies to help researchers gain deeper insights into wildlife medicine, evolutionary biology, and biodiversity preservation, thereby enhancing the capacity to protect endangered species.
- Value of the Frozen Zoo: Established in 1975, the San Diego Zoo's Frozen Zoo has preserved over 11,500 samples, making it one of the largest biobanks globally, and Illumina's involvement will further amplify its significance in biodiversity conservation efforts.
- Future Scientific Development: This partnership not only marks a new era of genomic discovery but also aims to establish a global network of conservation scientists, utilizing scalable multiomic technology to maximize the impact of biobanked samples, ensuring the success of conservation efforts for the next 50 years.
See More
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- Acquisition Overview: Illumina has completed its acquisition of proteomics technology company SomaLogic for up to $425 million, with $350 million paid upfront and an additional $75 million contingent on milestones and royalties, reflecting Illumina's commitment to the proteomics sector.
- Technological Integration Benefits: SomaLogic's offerings provide deep insights into protein function, interactions, and modifications, which will help accelerate the understanding of complex biology and human health, thereby enhancing Illumina's competitive edge in the biotechnology field.
- Market Outlook: This acquisition not only strengthens Illumina's product portfolio but also has the potential to drive innovation in precision medicine and biomarker development, further solidifying its leadership position in the genomics market.
- Strategic Implications: By integrating SomaLogic's technology, Illumina can expand its influence in biomedical research and clinical applications, which is expected to provide robust support for the company's future growth and profitability.
See More
Illumina Acquires SomaLogic to Enhance Proteomics Leadership
- Acquisition Scale: Illumina's acquisition of SomaLogic for $350 million in cash, with an additional potential $75 million based on performance, signifies a strategic expansion in the proteomics market, expected to significantly enhance the company's market share in biotechnology.
- Technological Integration: This acquisition combines SomaLogic's proteomics technology with Illumina's high-throughput sequencing platforms, enabling customers to rapidly generate rich multiomic datasets, thereby accelerating drug discovery processes and improving patient health outcomes.
- Market Growth Potential: By enhancing its competitive edge in the rapidly growing proteomics market through this acquisition, Illumina is poised to attract more customers and drive future revenue growth by offering a broader range of technologies and services.
- Strategic Partnership Continuation: Illumina's ongoing collaboration with SomaLogic since 2021 in the proteomics field is reinforced by this acquisition, ensuring service continuity for SomaLogic customers and further promoting the integration and innovation of technologies.
See More
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- Transaction Overview: Standard BioTools completed the sale of SomaLogic to Illumina for $350 million in cash, with potential earnout payments of up to $75 million, bringing total proceeds to $425 million, significantly enhancing the company's financial flexibility.
- Cash Reserves Boost: Following the transaction, Standard BioTools estimates a cash and cash equivalents balance of approximately $550 million, providing substantial funding for future M&A activities and supporting its inorganic growth strategy.
- Profitability Outlook: The company anticipates achieving positive adjusted EBITDA by 2026, marking a significant shift in profitability that will further solidify its market position in the biotechnology sector.
- Strategic Transformation Milestone: This transaction is viewed as a major milestone in Standard BioTools' strategic transformation, with the CEO stating that the company will focus more on accelerating growth and scaling operations to enhance competitiveness in the industry.
See More
