Why Illumina Stock Got Mashed on Monday
On Monday, for the second time in as many business days, Illumina (NASDAQ: ILMN) stock took it on the chin because of an analyst recommendation downgrade. The biotech's shares closed the day almost 6% lower, during a session when the S&P 500 (SNPINDEX: ^GSPC) landed in the black with a 0.7% increase.That morning, Barclays changed its recommendation on Illumina stock to underweight (read: sell) from the previous equal weight (hold). It also pulled the lever on a significant price target decrease, lowering its fair value assessment to $100 per share. Formerly, the bank had tagged the biotech as being worth $130. According to reports, Barclays' analysts were concerned that the current U.S./China trade dispute would negatively affect the company's operations. Early last week, the Chinese government put it on its "unreliable entity" list of mistrusted foreign companies. The two countries haven't fully settled their differences, so the situation might linger, to Illumina's likely disadvantage. Continue reading
On Monday, for the second time in as many business days, Illumina (NASDAQ: ILMN) stock took it on the chin because of an analyst recommendation downgrade. The biotech's shares closed the day almost 6% lower, during a session when the S&P 500 (SNPINDEX: ^GSPC) landed in the black with a 0.7% increase.
That morning, Barclays changed its recommendation on Illumina stock to underweight (read: sell) from the previous equal weight (hold). It also pulled the lever on a significant price target decrease, lowering its fair value assessment to $100 per share. Formerly, the bank had tagged the biotech as being worth $130.
According to reports, Barclays' analysts were concerned that the current U.S./China trade dispute would negatively affect the company's operations. Early last week, the Chinese government put it on its "unreliable entity" list of mistrusted foreign companies. The two countries haven't fully settled their differences, so the situation might linger, to Illumina's likely disadvantage.
