EC divesture statement ‘notably positive’ for Illumina, says Piper

Piper Sandler analyst David Westenberg thinks the European Commission’s "Statement of Objections" today to Illumina "should clear up all uncertainty that Illumina can effectively fight to keep Grail." The analyst sees this as "notably positive," saying the Commission’s terms included the word "swiftly." llumina will be better as a products only company, Westenberg tells investors in a research note. Its operating income should improve meaningfully and the company, particularly following the launch of NovaSEQ X, could see a return to near historical earnings multiples, "but without the expense drags associated with Grail," says the analyst. He reiterates an Overweight rating on Illumina with a $300 price target. Westenberg thinks Grail has been a negative overhang on the stock.