Morgan Stanley analyst Steve Beuchaw downgraded Illumina to Underweight and lowered its price target to $110 from $130 citing structural pressures in the clinical and academic channels. The analyst lowered is valuation of the cancer franchise to $3.8B from $4.9B on lower growth forecasts due to recent negative industry commentary, CMS and private payer reimbursement rates and policies, and weakening trends in targeted cancer therapies use. Beuchaw sees risk to consensus expectations for a 2H 2016 recovery and expects growth to remain below 30% in the medium term.