Barclays has reduced its price target for Illumina (ILMN, Financial), adjusting it downward from $100 to $77, while maintaining an Underweight rating on the stock. This adjustment comes as part of a broader analysis leading up to the first-quarter earnings announcement for the life science tools and diagnostics sector.
While tools within this sector generally remain a defensive investment, Barclays highlights growing concerns over potential pharmaceutical-specific tariffs. These tariffs could prompt further budget reductions, impacting the sector's defensive positioning. Consequently, the visibility surrounding contract research organizations has also diminished, prompting Barclays to downgrade these entities.
Investors are being cautioned about the evolving market dynamics that could influence the financial outcomes for Illumina and its peers in the near future.
