Travis Steed, an analyst from Bank of America Securities, maintained the Hold rating on GE Healthcare Technologies Inc. The associated price target remains the same with $82.00.
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Travis Steed’s rating is based on the recent acquisition of Intelerad by GE Healthcare Technologies Inc. The acquisition is seen as a strategic move to strengthen GEHC’s position in the PACS market, where their existing system, Centricity, has been noted for having downtime and integration issues. Intelerad’s system is considered robust and reliable, with excellent service and uptime, making it a suitable fit for GEHC’s current needs.
However, despite the potential benefits of this acquisition, the market for PACS is competitive, with strong players like Visage, Sectra, and Philips dominating the high-end segment. Additionally, the economic model for PACS, which often involves significant annual costs for imaging centers, could pose challenges in a capex-constrained environment. These factors contribute to the Hold rating, as the potential for growth is balanced by the competitive landscape and economic considerations.
Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Intuitive Surgical, and Medtronic. According to TipRanks, Steed has an average return of 7.0% and a 60.00% success rate on recommended stocks.
In another report released on November 24, Barclays also maintained a Hold rating on the stock with a $86.00 price target.