There aren't many companies that have done what Illumina, (NASDAQ: ILMN )
has done. Illumina does not have monopoly share, but it also doesn't
have much to worry about today in terms of competition. I have my doubts
as to whether Thermo Fisher Scientific (NYSE: TMO ) is truly prepared to invest the sort of sums into R&D that it will take to make Life Technologies Corp. (NASDAQ: LIFE ) a true neck-and-neck long-term rival, and Oxford Nanopore has struggled to deliver its systems to market on time.
The biggest problem with Illumina is the price. I realize growth
investors are famously ambivalent about valuation, but it looks to me as
though the market is pricing in over 20% long-term free cash flow
growth for Illumina. At that pace, the company would have well over $5
billion in revenue in 2022 and the sort of free cash flow margins that
even the best med-tech, pharmaceutical, diagnostics, and life sciences
companies struggle to match.
Read the full article at The Motley Fool:
Can Anything Stop Illumina?
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