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The Market Continues To Underprice Illumina's Stock And Its Genomics Leadership

Jun. 01, 2023 4:54 AM ETIllumina, Inc. (ILMN)5 Comments
Jishan Sidhu profile picture
Jishan Sidhu


  • Illumina is undervalued by 23% according to a discounted cash flow analysis, with a fair value of $253.94.
  • The company aims to expand into the $120bn TAM industries of oncology testing, genetic disease testing, reproductive health, and research and applied healthcare products.
  • Risks include dependence on sustained innovation and extraneous market demand and potential Grail divestment.
  • Due to its market position, undervaluation, and product quality, I rate the company a 'buy'.

Illumina Headquarters in San Diego.


Illumina (NASDAQ:ILMN) is a San Diego, California-based life sciences and biotechnology company, with operations spanning over 155 countries. The firm manufactures and markets integrated systems for genome sequencing and biological function testing.

This article was written by

Jishan Sidhu profile picture
I am a Canadian business student focused on quality long-only articles and searching for high-value companies. I have an event-driven focus, evaluating how equities perform under macro events, considering their financials and corporate strategy above all else.Through university clubs, I would also like to disclose my association with Francesco Infusino.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (5)

underprice? get real
SuperPac profile picture
ILMN was a $525 a share company in 2021 at the peak of ''Stonks always go up'' madness. Now it struggles at $200 a piece. How the mighty have fallen.

I think ILMN has another round of decline waiting to happen if the broader market cracks. Its leadership inspires very little confidence. The imminent departure of the CEO is one good thing though and I think the activist investor is going to kick some backsides. That will be good too for the company. I do not see its recovery any time soon.
bluescorpion0 profile picture
I expect chronic underperformance...
@arsenal50 because PACB is going to eat their lunch.
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