Illumina (ILMN) Stock Slumps on Morgan Stanley Downgrade

Illumina (ILMN) stock is falling on Tuesday morning after Morgan Stanley cut its rating on shares to ‘underweight’ from ‘equal weight.’
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Illumina (ILMN) - Get Report are sliding 4.5% to $134.40 Tuesday morning after Morgan Stanley slashed its rating on the stock to "underweight" from "equal weight," the Fly reports.

The firm also cut its price target to $110 from $130 on shares of the maker of integrated systems for the analysis of genetic variation and biological function.

Morgan Stanley cited structural pressures in the clinical and academic channels as reasons for the downgrade and lower price target.

The firm also reduced its valuation on the cancer franchise to $3.8 billion from $4.9 billion due to a lower growth forecast amid recent negative industry commentary, reimbursement rates and policies and weakening trends in the use of targeted cancer therapies, according to the Fly.

Morgan Stanley sees risk to consensus projections for a recovery in the second half of the year and views growth as remaining below 30% in the medium term.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: ILMN

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