Top 5 Stock Picks of Wen Han Li’s Andar Capital

In this article, we discuss the top 5 stock picks of Wen Han Li’s Andar Capital. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Wen Han Li’s Andar Capital.

5. Illumina, Inc. (NASDAQ:ILMN)

Andar Capital’s Stake Value: $8,112,000

Percentage of Andar Capital’s 13F Portfolio: 6.47%

Number of Hedge Fund Holders: 51

Illumina, Inc. (NASDAQ:ILMN) is an American biotechnology company that is engaged in the development of products and services that allow the analysis of genetic variation and biological function. Illumina, Inc. (NASDAQ:ILMN) is the pioneer of the revolutionary technology that made human genome sequencing an affordable process, cutting down the cost of the procedure from $1 million to $1,000. 

The biggest Illumina, Inc. (NASDAQ:ILMN) stakeholder is GuardCap Asset Management, which holds over 1.31 million shares in the company, worth $534 million. Overall, 51 hedge funds in Insider Monkey’s database of 873 elite funds were bullish on Illumina, Inc. (NASDAQ:ILMN), with a total stake value of $1.97 billion. 

Baird analyst Catherine Ramsey Schulte, on November 8, lowered the price target on Illumina, Inc. (NASDAQ:ILMN) to $437 from $493 and kept a Neutral rating on the stock. She stated that demand for genomics initiatives was higher, but the company is likely to face tougher comps in 2022. 

Illumina, Inc. (NASDAQ:ILMN) posted its Q3 results on November 4. EPS in the quarter came in at $1.45, outperforming estimated EPS by $0.23. The $1.11 billion revenue was up 39.55% from the prior-year quarter, exceeding estimates by $63.05 million.  

Here is what Polen Capital has to say about Illumina, Inc. (NASDAQ:ILMN) in its Q3 2021 investor letter:

“Illumina shares underperformed on news that the company closed its acquisition of GRAIL despite regulatory reviews in the U.S. and EU that are still pending. We believe there is no precedent for applicable courts to use as a basis for validly concluding this acquisition violates antitrust law. Also, we think U.S. regulators were unnecessarily delaying their regulatory reviews in hopes of deterring Illumina and GRAIL from moving forward. Grail is still a pre-revenue business, and we believe it will be highly dilutive to Illumina’s earnings in the short term. Still, we expect Illumina’s core business to strengthen as a result of this acquisition. We also expect earnings accretion from GRAIL in the intermediate-term as its liquid biopsy test appears to be effective for early cancer detection across 50 of the most lethal cancers (most of which there are no tests for today).”