BTIG analyst Dane Leone weighed in with his views on Illumina, Inc. (NASDAQ:ILMN), following the recent news that the company is joining Warburg Pincus and Sutter Hill Ventures to launch a new consumer-facing human genome platform called Helix. The analyst reiterated a Buy rating on ILMN, with a price target of $240, which represents a potential upside of 17% from where the stock is currently trading.
Leone observed, “Helix will be fully consolidated within Illumina’s financials and will not affect current FY2015 guidance, but is expected to be $0.10 dilutive to FY2016, although the company has not provided 2016 guidance. We make no change to our estimates, Buy recommendation, or $240 PT. While we will defer judgment of this project until additional details of the business strategy become available, we provide a few observations on the market for ‘Consumer Genomics’.”
“On the surface Helix seems like a way to aggregate massive amounts of genomic information on a large number of individuals, that could over time be linked to electronic health records and eventually, with proper consent, be accessed by Academic and Commercial research efforts. Generally speaking, the ‘Genomics Community’ sees the advancement of our genomic understanding as largely a ‘numbers game’ going forward. Recently we have already seen some validation of this thesis through the announced partnership between 23andMe and Genentech for researching Parkinson’s Disease,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dane Leone has a total average return of 10.1% and a 78.4% success rate. Leone has a 6.2% average return when recommending ILMN, and is ranked #556 out of 3740 analysts.
Out of the 18 analysts polled by TipRanks, 14 rate Illumina stock a Buy, while 4 rate the stock a Hold. With a return potential of 5%, the stock’s consensus target price stands at $214.77.