TD Cowen raises Illumina stock target to $89, maintains Hold rating

On Friday, TD Cowen adjusted its outlook on Illumina stock (NASDAQ:ILMN), increasing the price target to $89 from the previous $86, while keeping a Hold rating on the shares. According to InvestingPro data, Illumina’s stock has declined over 50% in the past six months, with current market capitalization at $12.2 billion. The firm’s analyst pointed out that Illumina has been able to sustain earnings per share (EPS) growth despite facing challenges such as a tough macroeconomic environment and specific headwinds from China and the National Institutes of Health (NIH) spending.

The analyst noted that while Illumina’s guidance for sales and EPS was lowered, which was anticipated, there are underlying positive aspects to consider. These include growth in the clinical segment as the company continues its transition with its product X and effective cost management strategies. InvestingPro analysis indicates that while the company operates with moderate debt levels, it maintains a healthy current ratio of 1.78. Despite these factors, the analyst believes that the stock’s valuation is more appealing now, but they only foresee a modest recovery in 2026, which supports the decision to maintain the Hold rating.

Illumina’s performance has been closely watched by investors, as the company navigates through external pressures and internal shifts. The company’s recent updates on its financial guidance and strategic moves appear to be key factors in the analyst’s assessment of its stock’s future prospects.

The updated price target suggests that TD Cowen sees a limited upside potential for Illumina’s stock, reflecting a cautious optimism about the company’s ability to handle its current challenges while progressing toward its long-term goals.

Investors and market watchers will likely continue to monitor Illumina’s performance, particularly in areas highlighted by the analyst such as clinical growth and cost management, to gauge the company’s trajectory in the face of ongoing economic and sector-specific headwinds.

In other recent news, Illumina Inc. reported its first-quarter 2025 earnings, showcasing an earnings per share (EPS) of $0.97, which surpassed analysts’ expectations of $0.94. The company’s revenue aligned with forecasts at $1.04 billion, though it reflected a slight year-over-year decline of 1.4%. Despite these positive earnings results, Illumina’s stock experienced a decline in after-hours trading, indicating investor concerns over broader market challenges. The company has initiated a $100 million cost reduction program to address these challenges and improve its financial standing. Additionally, Illumina faces significant impacts from tariffs, estimated at $85 million, and anticipates a decrease in revenue from China due to export restrictions. Analysts have noted challenges in the research market, particularly affecting academic and government segments, which have tempered growth prospects. However, Illumina’s strategic focus on cost reduction and innovation in sequencing technology underpins its competitive position in the genomics market.

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