Craig Bijou, an analyst from Bank of America Securities, maintained the Hold rating on GE Healthcare Technologies Inc (GEHC – Research Report). The associated price target remains the same with $82.00.
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Craig Bijou has given his Hold rating due to a combination of factors affecting GE Healthcare Technologies Inc. Despite recent positive developments in US/China trade relations, which could potentially benefit GEHC more than other companies in the medtech sector, the stock has been underperforming. It has declined by 15% since March, compared to a 3% decline in the broader medtech index, indicating some caution is warranted.
While the reduction in tariffs could lead to a significant upside in earnings per share by 2025, uncertainties remain regarding the company’s ability to mitigate tariff impacts effectively in the coming years. Additionally, although there is potential for growth in China, the company does not anticipate a substantial rebound in the near term. GEHC’s conservative guidance for the rest of the year further supports the Hold rating, as it suggests a cautious approach despite a strong start to the year.
In another report released on May 6, Morgan Stanley also maintained a Hold rating on the stock with a $78.00 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GEHC in relation to earlier this year.