On Friday, TD Cowen adjusted its stance on Illumina (NASDAQ:ILMN), a leading developer and manufacturer of life science tools and integrated systems for the analysis of genetic variation and function. The firm reduced the price target on NASDAQ:ILMN to $140 from the previous $150 while maintaining a Hold rating on the stock.
Illumina recently reported first-quarter earnings that surpassed expectations under the company's new management. Despite a challenging macroeconomic environment, including capital expenditure pressures, uncertainties in China, and diagnostic budget constraints, Illumina managed to deliver positive results. The company's next-generation sequencing (NGS) consumables saw a growth of 1%, which was better than TD Cowen's anticipated 5% decline. This growth was primarily driven by a product referred to as "X" in the analyst's notes.
However, Illumina experienced a shortfall in its instruments segment, with sales of "X" being notably underwhelming. The analysis by TD Cowen indicated that the mid-throughput platforms (mid-TP) were a particular weak spot for the company.
Following the after-market close (AMC), Illumina's stock saw a decrease in its trading price. The analyst from TD Cowen suggested that, based on the recent earnings report, the stock might experience an uptick in the near term (NT). This projection is grounded in the company's ability to perform better than expected in the face of various market challenges.
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