Illumina divestiture of GRAIL would be positive, says Canaccord

Canaccord reiterated a Hold rating on Illumina and maintained the firm’s price target of $130 after the company announced that it has publicly filed a Form 10 registration statement with the SEC in connection with its intended divestiture of GRAIL. While the document mainly centers on a possible spinoff of GRAIL, it appears Illumina is open to selling GRAIL to a third party, the analyst tells investors in a research note. A separation would be a positive development for the stock, but Cannacord remains on the sidelines given Illumina’s unfavorable core performance continues with no clear return to higher growth or stronger margins in the near-term.