BDSX - Illumina upgraded at Canaccord Genuity with readthrough to other firms on FTC challenge

The challenge by the U.S. Federal Trade Commission to block the proposed acquisition of Grail by Illumina ([[ILMN]] +4.0%) led to a ~6.6% sell-off of the stock yesterday.Citing a brighter post-COVID future for the company, Canaccord Genuity has upgraded the stock to buy from hold with the price target upped by ~8.5% to $445.00 per share implying ~20.6% upside to the previous close.Despite COVID-related uncertainty, the analyst, Max Masucci argues that the company’s recurring revenue model is ‘regaining visibility’ in 2021 backed by tailwinds such as noninvasive prenatal testing, population genomics, and the advancements in direct-to-consumer genomics.Weighing in on the FTC challenge, the analyst observes that the proposed business combination is a vertical merger of two companies without any direct competition.Citing Justice Department’s 2017 case against AT&T as a comparable event, Masucci highlights that AT&T ended up as the ultimate winner in closing its acquisition of Time Warner in June

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Illumina upgraded at Canaccord Genuity with readthrough to other firms on FTC challenge