Auriga Maintains Buy on Illumina After Roche Acquisition Proposal

Auriga has published a research report on Illumina

commenting on Roche's tender offer to acquire the company for $44.50/share. In the report, Auriga writes, "Roche noted its offer is a 64% premium over ILMN's stock price on December 21, 2011 – one day prior to rumors about a potential transaction pushed ILMN's stock price up 9%. Roche noted ILMN's management team and board has not been “receptive” to its offer. After a difficult 2H11, we believe ILMN's business has stabilized, due in part to its new product offerings, large installed base and evolving customer base. As such, we believe Roche's offer is inadequate as it does not accurately value ILMN's near term growth opportunities, as well as potential upside from ILMN's emerging opportunities within the clinical setting." Auriga maintains its Buy rating and $47 price target on Illumina, which closed yesterday at $37.69.