Buy the dip on GE Healthcare, says Needham
Source
GE Healthcare is set for a turnaround after a a period of underperformance, according to Needham. The research firm initiated coverage of the med-tech stock with a buy rating. It also assigned a $93 price target to shares, suggesting 43% upside from Monday's close. "Our Bull-Bear analysis of GEHC suggests shares are largely pricing in a Bear case, which creates an attractive risk/reward," analyst David Saxon said Tuesday in a note to clients. "Further, given GEHC's capital book-to-bill's correlation with capital growth outlook, we expect AIS growth to accelerate in 2027, which should serve as a source of upside to Street models, which only reflect PCS growth improving." Shares of GE Healthcare have fallen nearly 19% year to date as the company has missed earnings expectations and issued lackluster financial outlooks due to supply constraints and other issues. GEHC YTD mountain Shares are down about 21% in 2026. However, the company is expected to post stronger growth in the near future, while its stock should demonstrate "modest multiple expansion," per Needham. In its base case, the investment firm forecasts GE Healthcare Technologies will notch mid-single digit revenue growth and high-single digit earnings per share growth over the next year. It also sees GE Healthcare hitting a price-to-earnings multiple of 17 times its analyst's estimates for 2027. It currently trades at a forward multiple of 12.6, per FactSet. Needham's call falls in line with consensus on the Street. Of the 21 analysts covering GE Healthcare Technologies, 14 have a buy or strong buy on the stock, while seven have a hold rating on it, LSEG data shows.