In a report released yesterday, Craig Bijou from Bank of America Securities reiterated a Hold rating on GE Healthcare Technologies Inc (GEHC – Research Report), with a price target of $82.00.
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Craig Bijou has given his Hold rating due to a combination of factors, primarily revolving around the impact of tariffs on GE Healthcare Technologies Inc. Despite the company’s strong first-quarter performance, with revenue and EPS exceeding expectations, the looming tariff challenges have led to a downward revision of the EPS guidance. The tariffs are expected to have a significant impact on the company’s financials, with a projected $500 million headwind in 2025, which represents about 2.5% of sales.
GE Healthcare has taken steps to mitigate the tariff impact, successfully offsetting more than half of the gross headwind. However, the uncertainty surrounding the tariffs, particularly those between the US and China, remains a concern. While the company anticipates a reduced tariff impact in 2026 due to ongoing mitigation strategies, the current situation warrants a cautious approach. Consequently, Bijou maintains a Neutral stance, reflecting the balance between the company’s solid performance and the uncertainties posed by the tariff environment.
Bijou covers the Healthcare sector, focusing on stocks such as Merit Medical Systems, RxSight, and Bausch + Lomb Corporation. According to TipRanks, Bijou has an average return of 1.8% and a 44.60% success rate on recommended stocks.