Investing.com -- Barclays downgraded Illumina Inc (NASDAQ:ILMN) to "Underweight" given growing uncertainty in China, rising competition from Roche in the clinical market, and weaker-than-expected elasticity in consumables demand.
The firm said these factors raise concerns about management’s ability to meet long-term revenue projections. "we struggle to see how shares would perform with the rest of the group over the rest of the year," analysts wrote in a note.
Barclays (LON:BARC) lowered its price target to $100 from a prior $130. The firm warned that further multiple contraction is possible if China revenues decline materially.
While acknowledging Illumina’s technological edge, Barclays characterized the company as a mature tools business comparable to other genomics and proteomics firms, which typically exhibit mid-single-digit growth and mid-20% operating margins.
Related Articles
Barclays downgrades Illumina on China risks, competition
Amphenol Corp. ratings upgraded to 'A-' by S&P Global on strong business performance
McDonald's international markets prop up sales growth even as US lags
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.