It might have been one of the best moves GE ever made, branching off into GE HealthCare (GEHC). It’s made quite a few exciting strides since its inception, and it’s delivering a lot of value for shareholders to this day. It’s also up modestly in Thursday afternoon’s trading thanks to its recent deal with Amazon (AMZN) Web Services (AWS) to make a medical-focused generative artificial intelligence (AI) system.
The tool, now in development, will give GE HealthCare a whole new option for physicians to analyze medical data effectively and efficiently. This sounds reasonable enough until you realize that healthcare data is about one-third of all data made in the world, reports noted. Between scans, files, medical images, and a host of other points, trying to get that in one place to where it can even be analyzed is a tall order.
Enter GE HealthCare, whose system will, hopefully, do just that. And with as much as 97% of that generated data going unused, there’s a whole new set of reasons to put that data to work. This includes, among other things, augmenting screenings, supporting decisions, and improving scheduling.
Bolstering Ultrasound
And that’s not all GE HealthCare has in mind for AI work. It also recently spent a hefty $53 million to acquire Intelligent Ultrasound’s “artificial intelligence assets.” With these, OB/GYN exams get a serious lift, adding “real-time support” to clinicians and similar practitioners.
GE HealthCare has already put Intelligent Ultrasound’s work to use before, as the SonoLyst system has improved several of GE’s scanners. And, with the full range of options now under GE HealthCare’s banner, it will be able to make a proprietary line of hardware that should be well above anything else in the field.
Is GE HealthCare a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GEHC stock based on five Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 4.51% rally in its share price over the past year, the average GEHC price target of $91.88 per share implies 13.66% upside potential.
