In a report released yesterday, Craig Bijou from Bank of America Securities maintained a Hold rating on GE Healthcare Technologies Inc (GEHC – Research Report), with a price target of $97.00.
Craig Bijou has given his Hold rating due to a combination of factors impacting GE Healthcare Technologies Inc. One major concern is the company’s exposure to the ongoing US-China trade tensions, which have resulted in significant tariffs. These tariffs are likely to create a headwind for GEHC’s earnings, with an estimated 9% impact on EPS excluding Mexico. Additionally, the Chinese government’s retaliatory measures, including a 34% import tariff on US goods and an anti-dumping investigation, could further disrupt GEHC’s supply chain and operations.
Another factor influencing the Hold rating is the potential for a global recession, which could weaken hospital capital expenditures worldwide, affecting GEHC’s revenue. Despite these challenges, the impact of the Chinese import tariff is considered manageable, as only a small portion of GEHC’s sales in China are from imported products. However, the broader concerns about the trade war and economic slowdown have led to a cautious outlook, justifying the Hold rating.
Bijou covers the Healthcare sector, focusing on stocks such as Merit Medical Systems, RxSight, and Globus Medical. According to TipRanks, Bijou has an average return of 1.0% and a 43.19% success rate on recommended stocks.