Wedbush Raises Price Target on Illumina (ILMN), Calls Roche's Bid Price Cheap

Wedbush is reaffirming its Outperform rating on shares of Illumina (NASDAQ: ILMN) following the bid by Roche. The firm also raised its price target on the company from $35 to $50 per share.

The bid only represents a 18 percent premium and the firm doesn't believe that is enough and underappreciates the FCF generation by the company. An analyst at Wedbush comments, "Given the company’s recent progress, stabilized operations and continued technical leadership in sequencing, the offer price seems a bit low to us."

Wedbush raised its FY12 EPS estimate from $1.39 to $1.52 on new forecasts for better array sales growth, higher MiSeq system sales and slightly lower HiSeq 2000 sales.

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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