|Bid||268.00 x 1400|
|Ask||278.80 x 1000|
|Day's Range||271.14 - 278.16|
|52 Week Range||196.78 - 404.20|
|Beta (5Y Monthly)||0.88|
|PE Ratio (TTM)||58.38|
|Earnings Date||Nov 02, 2020 - Nov 06, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||303.73|
Illumina, Inc. (NASDAQ: ILMN) announced Monday a deal to buy privately held Grail, which focuses on early detection of multiple cancers, for $8 billion in cash and stock. The Illumina Analysts: Baird analyst Catherine Ramsey Schulte maintained a Neutral rating on Illumina shares and lowered the price target from $335 to $281.JPMorgan analyst Tycho Peterson downgraded Illumina shares from Overweight to Neutral and reduced the price target from $390 to $280.Wells Fargo Securities analyst Dan Leonard maintained an Underweight rating and took the price target from $290 down to $250.Baird Cautious On Grail Deal: Although the deal presents a large market opportunity, the reimbursement landscape remains uncertain, Ramsey Schulte said in a note.Given the hefty price tag, the analyst said she is cautious on the patience that will be required in the years ahead before any potential meaningful adoption can be seen.Baird said it is adding Grail to its model, assuming a December 2021 close, with $3.50 of EPS dilution in 2022 and what it views as an optimistic ramp scenario given the uncertain reimbursement landscape and fragmented market.See also: The Week Ahead In Biotech: Conference Presentations, IPOs In The Mix JPMorgan Finds It Hard To Get Excited: The deal will allow Illumina to participate in the early cancer detection market, estimated at $60 billion by 2023, Peterson said.At launch, Grail's Galleri cancer screening test will have an initial addressable market of 52 million lives prior to reimbursement, with test ASPs estimated to start at $1,200, the analyst said. The deal has uncertainty around the pace of market penetration and revenue generation, a lack of operational synergies, significant near-term dilution and potential distraction and dilution from the core business recovery next year, he said. Even without the deal, Illumina was already positioned to participate in Grail's ramp through its 14.5% stake in the company, HSD royalties, supply arrangement and more, Peterson said. Grail's Test Opportunity Unconvincing, Wells Fargo Says: Wells Fargo's bearish stance on Illumina is based on the firm's view that Street sales and earnings forecasts have more potential downside risk than upside potential, Leonard said in a note. Illumina's proposed deal to buy Grail carries much higher-than-expected earnings dilution, the analyst said, adding that he doesn't share the company's conviction in the commercial opportunity for Grail's cancer screening test.ILMN Price Action: After declining 8.6% Monday, Illumina shares were down another 0.67% at $268.33 at the time of publication Tuesday. Related Link: Attention Biotech Investors: Mark Your Calendar For September PDUFA Dates Latest Ratings for ILMN DateFirmActionFromTo Sep 2020Canaccord GenuityMaintainsHold Sep 2020BairdMaintainsNeutral Sep 2020UBSDowngradesBuyNeutral View More Analyst Ratings for ILMN View the Latest Analyst Ratings See more from Benzinga * The Daily Biotech Pulse: Novavax Vaccine Deals, Trevena Awaits FDA Decision, 2 IPOs * The Daily Biotech Pulse: FDA Nod For GlaxoSmithKline, Bristol-Myers Squibb Earnings, Acutus Medical IPO * The Week Ahead In Biotech: Novavax Coronavirus Vaccine Readout, FDA Decisions And More Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Looking at Q2, Illumina (NASDAQ: ILMN) earned $96.00 million, a 49.21% increase from the preceding quarter. Illumina's sales decreased to $633.00 million, a 26.31% change since Q1. In Q1, Illumina earned $189.00 million, and total sales reached $859.00 million.What Is ROCE? Changes in earnings and sales indicate shifts in Illumina's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed in a business. Generally, a higher ROCE suggests successful growth in a company and is a sign of higher earnings per share for shareholders in the future. In Q2, Illumina posted an ROCE of 0.02%.It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.View more earnings on ILMNROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Illumina is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will lead to higher returns and earnings per share growth.In Illumina's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.Q2 Earnings Insight Illumina reported Q2 earnings per share at $0.62/share, which did not meet analyst predictions of $0.67/share.See more from Benzinga * Benzinga's Top Upgrades, Downgrades For September 22, 2020 * Benzinga's Top Upgrades, Downgrades For September 21, 2020 * A Look Into Illumina's Price Over Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Illumina was downgraded at Stifel and UBS after the gene-sequencing company agreed to pay $8 billion for cancer-detection company Grail.