Illumina (ILMN): Growth Dislocation Creates Buying Opportunity - UBS

UBS reiterated its Buy rating on shares of Illumina (NASDAQ: ILMN) after the company reported 2Q16 sales of $600m (above consensus estimates of $593m) and EPS of $0.86 (also above consensus estimates of $0.73). Management maintained previous FY16 sales guidance of ~12% YoY growth and raised its EPS guidance to $3.48 - $3.58 from $3.35 - $3.45. The stock initially indicated up 5% after hours only to reverse course during the call.

The analyst stated "We still think ILMN continues to penetrate potentially large markets while also enabling broader adoption of Genomics 2.0 applications, but patience will be needed as ILMN continues to manage its transition from a new-product driven story to a market development story. While near-term catalysts are not obvious, historically, these periods of growth dislocation have proven to be good buying opportunities."

No change to the price target of $180.00

For an analyst ratings summary and ratings history on Illumina click here. For more ratings news on Illumina click here.

Shares of Illumina closed at $150.10 yesterday.

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