Announcements made by Illumina include product launches and partnership deals
Published By: Eunice Gettys on January 10, 2017 10:44 am EST
The market received quite a shock yesterday when Illumina, Inc. (NASDAQ:ILMN) made four major press releases which included product announcements and partnership deals. Evercore ISI believes that it will take a while to digest the announcements made by the company and hence they won’t be changing any of their estimates for the time being and reaffirmed both their rating and price target. Analyst Ross Muken believes that a first glance suggests that these developments could be very positive for the company and has strengthened the product line up significantly.
Following the announcements, Illumina stock gained around 10% of its value as the investors rushed to purchase the stock. Ahead of the press release, the market was quite skeptical and expected negative news. However, the announcements were surprisingly positive and took the investors by surprise. The four press releases made by Illumina included:
- Launch of single-cell sequencing solution in collaboration with Bio-Rad to help researchers study complex diseases
- Introduction of NovaSeq, a new sequencer
- Partnership with Philips in order to provide integrated genomics solutions for oncology
- Partnership with IBM to standardize the interpretation of Genomic Data
Mr. Muken believes that the above announcements have greatly changed the long term prospects of the company. The risk associated with the company heading into 2017 has essentially been eliminated. The investors will now be focusing on the newly announced products and will be carefully observing the extent of CapEx recovery that these products can generate. Furthermore, it will also help alleviate some of the pressure the stock has been facing in the stock market.
The analyst believes that the 10% gain in Illumina shares is warranted and reaffirmed the stock at Hold with a price target of $139. The analyst opinion regarding the stock is comprised of three buy, four outperform, 12 hold, two underperform and one sell. The stock currently trades at a price of $164.90.