Illumina (ILMN) shares plummeted 5.04% in Tuesday's intraday trading session following a significant price target cut by RBC Capital. The genetic sequencing company's stock faced pressure after RBC lowered its price target from $128 to $112, signaling potential near-term challenges for the firm.

Despite the price target reduction, RBC Capital maintained its Outperform rating on Illumina, suggesting confidence in the company's long-term prospects. This sentiment is echoed by the broader analyst community, as FactSet reports an average rating of overweight for Illumina, with a mean price target of $124.50.

The market's sharp reaction to the price target cut highlights investor sensitivity to changes in analyst outlooks, particularly in the highly competitive and rapidly evolving biotechnology sector. While the immediate stock movement reflects concerns over potential headwinds, the maintained Outperform rating and overall positive analyst sentiment indicate that Illumina's fundamental business outlook remains favorable in the long run.