Wall Street Thinks Illumina Stock Will Rise 27% in 1 Year. Here's Why That Probably Won't Happen.

Wall Street analysts are upbeat on California-based biotech Illumina (NASDAQ: ILMN) these days, estimating on average that the stock could climb by up to 27% over the next year. But without some serious and unexpected new developments, that composite estimate will probably not come true. Here's why. 

The most important reason why Illumina's shares are unlikely to rise that much in the near term is that nobody is anticipating an uptick in sales of the gene sequencers that Illumina makes -- or the consumable reagents that those sequencers need in perpetuity if they're to be usable by customers. 

Analysts suggest, on average, that the company could bring in $4.7 billion this year and nearly $5.4 billion next year. But for 2022, Illumina's revenue was approximately $4.6 billion, so its pace of growth is probably not going to be very impressive. Management expects that core revenue will remain flat for the year, even as it says that the launch of its new NovaSeq X device is occurring at an "unprecedented magnitude and pace."

Continue reading

Source Fool.com