Global medical technology company GE HealthCare is an “attractive large-cap diagnostics & imaging play,” according to Oppenheimer. The firm says GE HealthCare has become more focused following its recent spinoff from its parent company. Oppenheimer initiated coverage on the company with an outperform rating. Its price target of $97 per share implies shares rallying 20% from Monday’s close. “GE Healthcare is the global leader in healthcare diagnostics, imaging, and intervention. GE’s unparalleled depth and breadth of products in X-rays, CT, MRI, ultrasound, services, and digital solutions provide a unique ecosystem allowing multiple touch points along the continuum of care,” analyst Suraj Kalia wrote in a Monday note. He added that “GE’s recent spin-out provides a certain level of flexibility to undertake initiatives and chart its own destiny.” “Its medium-term margin outlook is predicated on key initiatives,” including optimizing manufacturing, introducing new products and integrated digital solutions, Kalia said. The analyst noted that GE HealthCare looks to benefit from an aging population and increase in chronic diseases. He expects the global diagnostic imaging, screening and patient care space, which is currently an estimated $84 billion sector, to grow from 4% to 6% compound annual growth rate over the next five years. “[An] unique ecosystem and 125-year brand recognition provide stability in commercial execution,” Kalia said. The company’s continuous shift to AI-enabled devices could “provide tailwinds to GE,” he added. The company began trading on the Nasdaq on Jan. 4. Shares have gained 28.3% since the beginning of the year. —CNBC’s Michael Bloom contributed to this report.
