Illumina downgraded at Scotiabank on outlook; Danaher, Thermo Fisher upgraded

Illumina (NASDAQ:ILMN) shares fell on Friday after Scotiabank cut its rating to Sector Perform from Sector Outperform, citing concerns over the company’s 2026 outlook and becoming the second brokerage to initiate a downgrade on the gene sequencing company this week.

However, Analyst Sung Ji Nam upgraded Illumina’s (NASDAQ:ILMN) peers in the life sciences industry, namely Danaher (NYSE:DHR) and Thermo Fisher Scientific (NYSE:TMO), to Sector Outperform from Sector Perform.

Sung Ji Nam cited headwinds ILMN is facing in China, where its gene sequencers were banned in March, and Illumina’s (NASDAQ:ILMN) relatively high exposure to the U.S. Academic & Government segment.

Given those concerns, “we are modeling what we believe to be the most conservative assumptions for ILMN for 2026,” Bloomberg News reported, quoting a research note from the analyst who also lowered the price target on the stock to $125 from $164 per share.

On Wednesday, Citi downgraded Illumina (ILMN) to Sell from Neutral, arguing that the firm’s bearish views don’t support the recent rally in the company’s shares.

As for Danaher (NYSE:DHR), Sung Ji Nam projected a more favorable outlook this year and next given its exposure to later-stage development/bioprocessing spending in pharma/biotech, as well as diagnostics, and a low single-digit exposure to the U.S. A&G segment.

“We believe DHR is on track to accelerate its growth profile over the next 12–18 months,” she added, raising the stock’s target price to $275 from $265 per share.

Despite the upgrade, the analyst trimmed her price target on Thermo Fisher (NYSE:TMO) to $590 from $605, citing a disproportionate impact for the company from the discussions surrounding the U.S. healthcare and trade policy.