RBC Capital remains bullish on Illumina as innovation event creates buzz

RBC Capital says the firm was surprised to hear about an Illumina innovation event scheduled for next week, though details remain scarce. The event tagline – “The next big thing is small” – makes RBC believe the company will be discussing a new product offering to the low-throughput-screening market. The firm believes this type of event coincides with the messaging at Illumina’s August strategy update call to bring the total cost of sequencing down for customers, fueled by innovations coming out of the $1B in R&D spend. Creating buzz through these types of events “feels like the Illumina of old” and RBC continues to think revenue acceleration and margin expansion, coupled with quarterly beats and raises will lead to multiple expansion. The firm keeps an Outperform rating on the shares with a price target of $252 price target with Illumina remaining one of its best ideas.