Illumina (ILMN) Stock: $437 Price Target From Baird

By Amit Chowdhry ● Nov 25, 2021
  • The shares of Illumina, Inc. (NASDAQ: ILMN) have received a price target of $437 from Baird. These are the details.

The shares of Illumina, Inc. (NASDAQ: ILMN) have received a price target of $437 from Baird. And Baird analyst Catherine Schulte reduced the price target on Illumina from $493 while maintaining a “Neutral” rating on the company shares.

Schulte noted that the company’s third-quarter revenues were ahead of consensus, which was driven by record clinical and research sequencing shipments, population genomics initiatives, and better-than-expected COVID surveillance contributions. And Schulte is encouraged by what seems to be a healthy underlying demand. But she worries about some tough comps heading into next year.

These are the highlights from the company’s Q3:

— Revenue of $1,108 million, a 40% increase compared to the prior-year period

— GAAP net income for the quarter of $317 million, or $2.08 per diluted share, which included a $900 million gain from our previously held investment in GRAIL and $654 million in day one compensation expense related to the GRAIL acquisition. This compared to $179 million, or $1.21 per diluted share, for the prior-year period

— Non-GAAP net income for the quarter of $221 million, or $1.45 per diluted share, which included dilution from GRAIL non-GAAP operating loss of $0.19 per diluted share and incremental dilution from the 9.8 million shares issued to fund the GRAIL acquisition of $0.06 per diluted share. And this compared to $150 million, or $1.02 per diluted share, for the prior-year period. The non-GAAP net income excludes gain on a previously held investment in GRAIL, day one compensation-related expense and other acquisition-related expenses.

— Cash flow from operations of $(272) million compared to $153 million in the prior-year period

— Free cash flow (cash flow from operations less capital expenditures) of $(324) million for the quarter compared to $105 million in the prior year period

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.