Stifel reaffirms ‘Buy’ on Illumina stock, new product launches boost growth outlook

On Wednesday, Stifel reaffirmed its Buy rating on Illumina (NASDAQ:) stock, with a steady price target of $160.00.

The firm’s assessment followed Illumina’s recent strategy day, where the company outlined its plan to enhance growth and profitability, not solely through the sale of sequencers for cheaper DNA sequencing, but also by launching new products within the next 12 to 18 months. Illumina’s strategy includes a focus on the total cost of workflow and ownership rather than just the cost per gigabase of data.

The company’s financial forecast anticipates double-digit earnings per share (EPS) growth into 2027, with high single-digit organic growth expected by that same year.

Shorter-term expectations for 2025 suggest mid-single-digit range growth, with EPS projected to be near $4.25 to $4.50 rather than the $4.50 to $4.75 range.

Illumina’s forward-looking statements indicated the company’s acknowledgment of the current industry environment and the challenges it faces, including pricing pressures.

The firm emphasized that while Illumina has significant hurdles to overcome, the strategy day provided a growth outlook that recognizes these challenges without burdening issues related to GRAIL, a previous concern for the company.

The reaffirmed Buy rating and price target reflect Stifel’s confidence in Illumina’s strategic direction and its potential for future growth. With the company’s emphasis on new product launches and a comprehensive approach to cost management, Illumina aims to strengthen its market position and financial performance over the coming years.

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