Illumina is engaged in production development that offers integrated systems, consumables and analysis tools for genetic analysis.
Canaccord believes that blistering demand from new products gives Illumina leadership position, innovation and pipeline in the dynamic next-generation sequencing (NGS) market opportunity.
"We think Illumina enters adjacent markets and expands its vision long term. Near term, we expect strong growth in high-throughput sequencing, oncology and prenatal diagnostics," Canaccord analysts said.
Recent launches of HiSeq X Five and HiSeq 3000/4000 are likely to accelerate adoption of population sequencing and high throughput clinical grade sequencing, respectively, the firm added.
Separately, TheStreet Ratings team rates ILLUMINA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ILLUMINA INC (ILMN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 28.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.80, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ILMN has a quick ratio of 2.42, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Life Sciences Tools & Services industry and the overall market, ILLUMINA INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for ILLUMINA INC is currently very high, coming in at 75.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.37% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 80.06% to $66.78 million when compared to the same quarter last year. In addition, ILLUMINA INC has also vastly surpassed the industry average cash flow growth rate of -6.98%.
- You can view the full analysis from the report here: ILMN Ratings Report