Citi Downgrades Illumina to Sell, Adjusts Price Target to $80 Amid Future Risks

Citi has downgraded Illumina (ILMN) from Neutral to Sell, citing significant risks to the company's projections in H2 2025 and 2026 due to funding uncertainties and a competitive landscape. The average one-year price target for ILMN is $109.16, with an upside of 9.96% from the current price. The estimated GF Value for ILMN in one year is $137.20, suggesting a potential upside of 38.21%.

Citi has downgraded Illumina (ILMN) from Neutral to Sell, citing significant risks to the company's projections in H2 2025 and 2026 due to funding uncertainties and a competitive landscape. The average one-year price target for ILMN is $109.16, with an upside of 9.96% from the current price. The estimated GF Value for ILMN in one year is $137.20, suggesting a potential upside of 38.21% [1].

The downgrade comes as Citi expresses concerns about Illumina’s second-half outlook, despite expectations for in-line second-quarter results. The firm cited challenges in Illumina’s consumables ramp due to a softer academic backdrop and conditions in China, with pricing ramp also under scrutiny [1]. Citi warned of potential stock risk if Illumina cuts its guidance, which would mark the third earnings per share guidance reduction this year. Alternatively, maintaining current guidance could also present risk to the stock as second-half performance concerns would remain unaddressed [1].

In other recent news, Standard BioTools has announced the sale of its SomaLogic business to Illumina for up to $425 million, comprising $350 million in upfront cash and up to $75 million in milestone payments. This transaction is part of Standard BioTools’ strategy to streamline operations and achieve adjusted EBITDA break-even, with expectations of having at least $550 million in cash post-closure. The deal, which includes royalties on SOMAmer-based products, is anticipated to close in the first half of 2026, pending regulatory approvals [1].

The life science instrumentation market is witnessing robust expansion driven by technological advancements and rising demand across biotechnology, pharmaceutical, and healthcare sectors. The market size is estimated to be valued at USD 58.63 billion in 2025 and is expected to reach USD 90.58 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2025 to 2032 [3].

Illumina, Inc. provides sequencing- and array-based solutions for genetic and genomic analysis in the Americas, Europe, Greater China, the Asia Pacific, the Middle East, and Africa. The company offers sequencing- and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest [2].

References:
[1] https://www.investing.com/news/analyst-ratings/citi-downgrades-illumina-stock-rating-to-sell-on-concerns-over-2h-outlook-93CH-4127720
[2] https://finance.yahoo.com/quote/ILMN/
[3] https://www.newstrail.com/life-science-instrumentation-market-generated-opportunities-future-scope-by-2032-agilent-tech-danaher-corp/