In a report released yesterday, Ryan Zimmerman from BTIG maintained a Buy rating on GE Healthcare Technologies Inc, with a price target of $87.00.
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Ryan Zimmerman has given his Buy rating due to a combination of factors, primarily centered around GE Healthcare Technologies Inc’s strategic acquisition of Intelerad. This acquisition is expected to enhance GEHC’s software-as-a-service offerings by integrating Intelerad’s cloud-based and AI-enhanced imaging solutions, which are anticipated to boost the company’s recurring revenue streams. The acquisition aligns with GEHC’s digital transformation goals and positions the company to expand into a growing segment of outpatient enterprise imaging.
Financially, the acquisition is projected to be beneficial for GEHC, with Intelerad expected to contribute significantly to revenue in its first year of ownership, with a high percentage of recurring income. Although there may be slight short-term dilutive effects on adjusted EPS, management plans to counterbalance this with cost efficiencies and anticipates a solid return on invested capital over the next five years. Additionally, the valuation of GEHC’s stock is considered attractive, with a price target based on a multiple that reflects both improved execution and macroeconomic risks, making it a compelling investment opportunity.
In another report released on November 18, Piper Sandler also maintained a Buy rating on the stock with a $91.00 price target.