Illumina's Clinical Sequencing Revenue Seen as Durable Mid-Teens Grower, RBC Capital Markets Says

MT Newswires Live10-05 23:00

Illumina (ILMN) is positioned for durable mid-teens growth in clinical sequencing revenue, driven by oncology volume growth and easing pricing headwinds, RBC Capital Markets said in a note Sunday.

The brokerage said growing adoption of minimal residual disease testing, broad-based tumor profiling approvals, NGS-based colorectal cancer test coverage, and progress in multi-cancer detection should benefit Illumina's instrument and consumables business.

RBC also highlighted Illumina's BioInsight business and Billion Cell Atlas, which could provide biological training data for pharma AI models, and expects BioInsight to contribute to an additional 1 to 2 percentage points of growth in fiscal 2027.

The brokerage expects academic research demand to bottom in fiscal 2027, while improving reimbursement, low market penetration and oncology growth should support Illumina's clinical business.

RBC Capital Markets maintained its outperform rating on the stock and raised its price target to $310 from $230.

Illumina shares were up 1.4% in Monday trading.

Price: 276.85, Change: +3.81, Percent Change: +1.40

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