Citi downgraded Illumina (NASDAQ:ILMN) to Sell from Neutral, lowering its price target to $80 as concerns grow over the company’s ability to meet second-half expectations.
While second-quarter results are expected to be in line with forecasts, Citi sees growing risk to the remainder of the year. The outlook for Illumina’s consumables business appears uncertain, with headwinds coming from a softer academic funding environment and sluggish demand in China. Adding to the pressure is the company’s pricing strategy, which remains a focal point for investors.
The firm also expressed concern over the possibility of another guidance cut—what would be the third this year. Even if Illumina maintains its outlook, Citi believes the risk remains that current expectations are too high, potentially setting the stage for disappointment later in the year. With confidence in the second-half recovery weakening, Citi is taking a more cautious stance on the stock.
