NEW YORK (GenomeWeb News) – Leerink Swann analyst Isaac Ro today lowered the bank's estimates and valuation on Illumina.
He lowered the estimate on Illumina's 2010 earnings per share to $1.03 from his previous estimate of $1.18, based on the assumption that the firm's R&D and SG&A spending will increase.
While Ro described the near-term sentiment for the stock as negative, he wrote that 2010 should be a "catalyst-rich year," re-focusing investors on the firm's product pipeline. "In our opinion, management has repeatedly demonstrated vigilance and activism around new technology development and will continue to do so via M&A," he wrote.
Ro maintained an "outperform" rating on Illumina's stock, but he lowered the 12-month valuation to $28-$30 from a previous range of $35-$38.