Morningstar Rating

Stock Research and Analysis

by Michael Waterhouse

Bulls Say

Genome sequencing remains a relatively nascent market, representing a large growth opportunity for Illumina’s instruments.
Weak economic conditions have constrained global research budgets, but academic, government, and commercial markets have specifically prioritized sequencing research.
Illumina currently has the largest, and growing, installed base of sequencing instruments, which translates into ongoing sales of higher-margin consumables. Read more 

Bears Say

An emerging sequencing technology could eventually leapfrog Illumina’s platform, leading to market share losses.
A significant portion of Illumina’s market growth will require clinical adoption of sequencing technology, which faces considerable regulation, validation, treatment guidelines, and reimbursement challenges.
Illumina’s future success depends on management’s ability to sustain innovation and astute capital allocation. One misstep could prove costly. Read more 

Management

We are upgrading Illumina’s stewardship rating to Exemplary, based on the company’s history of shrewd capital allocation. Nevertheless, we acknowledge that management faces a tall order in the quest to sustain the company’s leadership amid the blistering   Read more 

Profile

Illumina is a major player in life science tools for analyzing genetic material. Revenue from microarray and genome sequencing machines and disposables make up most of the   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

Health Care a Leader in Moat Stocks 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.