Auriga Reiterates a 'Buy' on Illumina (ILMN); Roche Goes Hostile - Likely Only An Opening Offer
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Price: $190.89 -0.91%
Rating Summary:
18 Buy, 20 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 20 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga reiterates a 'Buy' on Illumina (NASDAQ: ILMN) price target of $47.00.
Auriga analyst says, "Last night, after the close, Roche (OTC: RHHBY)(NotRated) announced a hostile proposal to acquire all outstanding shares of Illumina for $44.50 per share in cash. The offer values ILMN at approximately $5.7B on a fully diluted basis, and is 30.1x the current consensus 2012 estimates. Roche's offer represents an 18% premium over yesterday's closing price and appears to be an opportunistic offer given the pullback in ILMN's share price. 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. We expect Roche's offer will need to be increased."
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 $37.69 yesterday.
Auriga analyst says, "Last night, after the close, Roche (OTC: RHHBY)(NotRated) announced a hostile proposal to acquire all outstanding shares of Illumina for $44.50 per share in cash. The offer values ILMN at approximately $5.7B on a fully diluted basis, and is 30.1x the current consensus 2012 estimates. Roche's offer represents an 18% premium over yesterday's closing price and appears to be an opportunistic offer given the pullback in ILMN's share price. 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. We expect Roche's offer will need to be increased."
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 $37.69 yesterday.
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