RBC Capital raises Illumina stock price target on clinical sales

RBC Capital increased its target price for Illumina Inc. shares to $310 from $230, while keeping an Outperform rating, according to a report on Sunday. The analyst attributed the price increase to the multiple re-rating of Illumina's ecosystem, driven by clinical sales growth and positive catalysts. Illumina's stock has gained 80% over the past year, trading near its 52-week high with strong momentum in the last three months.

The firm also noted that Illumina's multiple is being positively influenced by the AI potential of various Tool companies. RBC Capital mentioned that customer purchasing dynamics cause near-term fluctuations, but the company's long-term outlook has improved over the past three months. The analyst believes the stock is undervalued and recommends it as one of the opportunities on the Most Undervalued list.

Illumina also announced a $300 million note offering to refinance debt, which will be used to pay off existing notes due in 2026. Meanwhile, Freedom Broker downgraded Illumina's rating to Hold from Buy, but increased the price target to $185 due to strong quarterly results. Canaccord and Stifel also raised their price targets to $205 and $225, respectively, while maintaining a Hold and Buy rating, citing positive earnings and product demand.

Guggenheim raised its price target to $226, also maintaining a Buy rating, following Illumina's earnings and revenue surpassing analyst estimates.