Jefferies analysts have upgraded GE HealthCare Technologies (GEHC) stock to a “buy” rating and raised their price target from $95 to $103, exceeding the consensus target of $95. This positive outlook propelled GEHC shares up 3.5% to close at $86.26 on Wednesday, adding to the stock’s 13% gain over the past year.
The upgrade is based on GE HealthCare’s dominant position in the diagnostic imaging market, a sector projected to experience mid-single-digit growth. Jefferies analysts believe this market leadership, coupled with potential market consolidation, positions GE HealthCare for continued success. The analysts highlighted the company as a “franchise pick,” indicating a strong belief in its long-term growth potential.
A key factor in Jefferies’ bullish outlook is the anticipated recovery of the Chinese market. China currently represents 12% of GE HealthCare’s sales. Previous macroeconomic weakness in China had negatively impacted the company’s third-quarter sales, as reported in October. Improved performance in this significant market could provide further upside for GE HealthCare. This potential resurgence in China is seen as a significant catalyst for future growth, adding to the already positive momentum driven by the company’s strong position in the diagnostic imaging sector.
In conclusion, Jefferies’ upgrade to “buy” and increased price target for GE HealthCare stock reflects confidence in the company’s leading market position, growth prospects in the diagnostic imaging field, and potential for improved performance in the Chinese market. These factors combine to present a compelling investment thesis for GE HealthCare.
