GE Healthcare: Jefferies starts tracking on hold

(CercleFinance.com) - On Thursday, Jefferies began tracking GE HealthCare shares with a "hold" recommendation and a target price of $80.


In its comments, the broker points out that GE Healthcare holds leading positions in well-established but growing markets such as medical imaging, ultrasound, patient monitoring and diagnostics.

These businesses represent a total market potential of around $84bn, based on annual growth of 4.5%, or the equivalent of some $100bn by 2025, not counting "adjacencies" - related markets that could generate a further $50bn, Jefferies points out.

Given that GEHC has said that it is aiming for sales growth of around 15% and an adjusted operating margin of 20%, compared with 15% in 2022, the analyst anticipates growth of 13% over the 2023/2025 period, in line with other major medtech groups.

However, trading at a P/E of around 17x, Jefferies sees only limited upside potential at current levels.


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