Morgan Stanley Provides Color on Illumina, Overweight

Morgan Stanley provided color on Illumina

after meeting the company's CEO Jay Flatley. In a research report published today, Morgan Stanley maintained its optimism about the company's long-term prospects. In the report, Morgan Stanley states, "Early MiSeq orders appear to be building strongly with demand from both current and new customers consistent with a large, new market for sequencing. Head to head evaluations of MiSeq and Life's Ion Torrent/PGM have been limited to date but will be an increasingly common competitive theme with the formal MiSeq launch in 3Q... GM will continue to rise with sequencing consumable price/mix, HiSeq ASP and HiSeq GM improvement. MiSeq will be only modestly dilutive to margins and management does foresee material changes in R&D or SG&A trend in the near term." At the moment, Morgan Stanley has an Overweight rating on the company's stock. On Monday, Illumina closed the day at $72.13.