UPDATE: ISI Group Initiates Market Weight, $45 PT on Illumina on Soft Demand Environment
ISI Group initiated its coverage on Illumina (NASDAQ: ILMN) with a Market Weight rating and a $45 price target.
ISI Group noted, "We are initiating coverage on shares of Illumina with a Market Weight rating and a price target of $45.00, which on a forward basis equates to ~12x EV/EBITDA and ~25x operating EPS. Our thesis for ILMN is based on our view that strong growth in MiSeq and an improving HiSeq through-put will help to offset an increasingly challenging budgetary environment, that microarray growth will remain modest as demand for emerging applications helps to soften a slowdown in legacy GWAS, and that recent strategic interest in asset (e.g. Roche's hostile bid) provides a modest valuation premium."
Illumina closed at $40.60 on Monday.
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