Illumina expects positive growth by FY26 with 22% upside potential despite competition risks.

Illumina's fundamentals are improving, with expectations to return to positive growth by fiscal year 2026, including a 2% organic growth and a 3% year-over-year EBIT margin expansion. The company faces competition risks from Roche and others, but recent developments appear already priced into the stock, which has stabilized since Roche's Axelios reveal. Additionally, the acquisition of Somalogic is expected to provide further upside. A discounted cash flow model supports a BUY rating with a target price of $156, implying a 22% upside driven by margin expansion and product mix improvements.