Illumina, 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 $75.00 price target.
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Michael Ryskin has given his Sell rating due to a combination of factors impacting Illumina’s competitive position. One of the primary concerns is the emergence of Roche’s SBX platform, which is seen as a significant competitor to Illumina. Roche’s platform, Axelios, has been making strides in its development and pricing, posing a threat to Illumina’s market share. The pricing of consumables for Roche’s system is comparable to Illumina’s NovaSeqX, which could lead to increased competition in the market.
Additionally, the cost of Roche’s instruments is positioned competitively between Illumina’s high-throughput and mid-throughput systems, making it an attractive option for potential buyers. This competitive pricing, along with the potential for Roche’s platform to outperform Illumina in certain applications, suggests that Illumina may face challenges in maintaining its pricing power and market dominance. As a result, Illumina might need to make pricing concessions and increase its R&D investments to stay competitive, leading to potential financial pressure on the company.
In another report released on October 16, Barclays also maintained a Sell rating on the stock with a $95.00 price target.