© Reuters Cowen sees an Attractive Long Case for Illumina (ILMN)
By Sam Boughedda
Discussing the launch of Illumina’s (NASDAQ:) NovaSeq™ X Series, new production-scale sequencers, Cowen analysts said the firm’s Key Opinion Leader (KOL), Dr. Chris Mason of Weill Cornell, “was “quite positive on the new NovaSeq X/X Plus.”
“He’s a longtime bull on demand elasticity,” wrote the analysts, who have an Outperform rating and a $327 price target on Illumina. “As such he’s enthusiastic the new $200 price/genome (plus numerous other improvements) will drive a material increase in R&D sequencing (volumes, more WGS) & enable signif. expansion in clinical use/volumes across NYC’s AMCs.”
The analysts explained that from a competitive standpoint, Dr.Mason “remains optimistic about some of the new players, though now envisions ~half the rate of share loss looking out as he previously assumed given NovaSeq’s X Plus’ price and stronger profile.”
They told investors: “ILMN traded off (4%), atypical for a product launch day. We see an attractive long case, given our increased confidence in the upgrade cycle, the resultant growth acceleration, discounted valuation and negative sentiment. In addition, a GRAIL exit (increasingly likely, timing TBD) we think would be a material positive for shares.”
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