Canaccord maintains Illumina stock hold with $135 target

On Tuesday, Canaccord Genuity maintained a Hold rating on Illumina stock (NASDAQ:ILMN) with a consistent price target of $135. The stock, which has declined over 37% in the past year and currently trades at $88.74, sits between its 52-week range of $83.79 to $156.66. According to InvestingPro data, analysts’ price targets for the stock range from $90 to $247. The decision comes after China’s Ministry of Commerce (MOFCOM) announced on March 4, 2025, a ban on imports of genetic sequencers from Illumina, effective immediately. MOFCOM had previously placed Illumina on its Unreliable Entity List (UEL) the previous month.

The import ban from MOFCOM is expected to significantly restrict Illumina’s instrument sales to its Chinese customers. However, it is not yet clear whether the ban extends to the company’s reagents. Analysts believe that the ban is likely focused on instruments, which might allow Illumina to continue supporting its existing user base within China. Despite this, China accounts for less than 10% of Illumina’s revenue, a figure that has been on a downward trend due to competitive pressures and broader macroeconomic challenges, which may include geopolitical factors.

Illumina’s business outside of China is not without its difficulties. The company is navigating uncertainties with the National Institutes of Health (NIH) funding in the United States and facing stiff competition in European markets. Analysts at Canaccord Genuity express skepticism regarding the potential impact of Illumina’s new multiomics product launches in counterbalancing these challenges.

While acknowledging the company’s refreshed strategic direction, Canaccord Genuity prefers to remain on the sidelines. The firm cites the need for improved visibility and financial performance from Illumina before reconsidering their stance on the stock.

In other recent news, Illumina Inc. is facing significant challenges due to China’s recent ban on the import of its gene sequencers, impacting its operations in the region. This development has prompted various analyst firms to reassess their ratings and price targets for Illumina. Barclays (LON:BARC) has maintained an Underweight rating with a $100 target, expressing concerns about Illumina’s ability to meet its earnings guidance without considering the operational difficulties in China. Meanwhile, Evercore ISI and Stifel have both reiterated their Outperform and Buy ratings, respectively, each with a $160 target, emphasizing Illumina’s potential resilience despite the uncertainties.

Wolfe Research also maintained an Outperform rating with a $150 target, suggesting confidence in Illumina’s long-term growth potential despite the immediate challenges. Leerink Partners echoed this sentiment, maintaining an Outperform rating and a $150 target, while noting that Illumina’s stock has already factored in the challenges in the Chinese market. The export ban primarily affects the sale of gene sequencers, but not consumables or services, which are crucial revenue streams for Illumina in China.

Analysts have highlighted that the ban could lead to adjustments in Illumina’s earnings forecasts, with potential impacts on its earnings per share (EPS) and overall revenue. Despite these challenges, Illumina’s management is reportedly exploring domestic manufacturing within China to mitigate the effects of the ban and maintain its market position. Investors are advised to keep a close watch on Illumina’s upcoming earnings reports for any material impairment charges and further developments in its operational strategies in China.

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