Illumina upgraded to Buy following Grail divestiture at Citi

Citi upgraded Illumina to Buy from Neutral with a $140 price target. Following the Grail divestiture, the analyst sees potential core margin upside heading into next year at a “reasonable valuation.” Even though much remains uncertain in the near-term, investors are focused on stories with potential upside to 2025 numbers where choices remain limited in tools, the analyst tells investors in a research note. Citi excepts an acceleration of consumable pull through as customers validate the new instrument/assays for their new projects on Illumina’s NovaSeq X system.