** Shares of gene sequencing company Illumina ILMN.O rise 4.7% to $122.3

** China lifted its export ban on Illumina instruments, domestic firms can apply to resume transactions with Illumina, subject to review and compliance, Evercore ISI says

** The ban followed Illumina's addition to China's "unreliable entities" list earlier this year; the latest move removes that restriction for several U.S. firms

** Evercore ISI notes Illumina's China revenue peaked at $502 million in 2021 and has fallen since

** With the ban now lifted, Evercore ISI expects that, even assuming flat China sales, Illumina is positioned to show positive reported organic growth in FY26

** The brokerage says that while investors still watch Roche's ROG.S entry into the market, it believes "the worst might be behind us"

** As of last close, ILMN stock was down 8.9% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))