The firm has a "buy" rating on the stock.
Illumina reported 2015 third quarter earnings results on Tuesday, with "light" revenue and "soft" fourth quarter guidance, Canaccord said in a note.
Even so, Illumina saw 36% growth in sequencing consumable revenue, and high-throughput sequencing should help the company remain "well positioned," the firm notes.
The company will not face any "meaningful" competitors for at least three years, and will likely expand its total addressable market with continued new product launches during that time, according to Canaccord.
Illumina reported earnings of 80 cents per share on revenue of $550 million for the most recent quarter yesterday afternoon.
Based in San Diego, Illumina is engaged in production development of sequencing and array-based solutions for genetic analysis.
Shares of the company are down 2.12% to $142.02 in early morning trading on Wednesday.
Separately, TheStreet Ratings team rates ILLUMINA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate ILLUMINA INC (ILMN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.
You can view the full analysis from the report here: ILMNILMN data by YCharts