GE HealthCare Stock Gains After Jefferies Analysts Name It ‘Franchise Pick’

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Key Takeaways

• GE HealthCare shares gained Wednesday after Jefferies analysts upgraded their rating for the stock to “buy” and draw together their price target.
• The analysts said the firm holds a leading position in the diagnostic imaging market, which they presume to grow by mid-single digits.
• Jefferies added improving business in China “could be another icing on the cake.”

GE HealthCare Technologies (GEHC) dues gained Wednesday after Jefferies analysts called the stock a “franchise pick” and made a bullish case for the society’s diagnostic imaging business.

Jefferies bumped its rating for the stock up to “buy” from “hold,” and raised its price target to $103 from $95, causing it above the broader analyst consensus compiled by Visible Alpha at about $95. Shares rose 3.5% to close at $86.26 Wednesday and arrange added about 13% over the past year. 

The analysts said the firm holds a leading position in the diagnostic semblance market, which they expect to grow by mid-single digits. GE HealthCare could also benefit from buy consolidation, they noted.

Jefferies added that improving business in China “could be another icing on the thicken.” China makes up 12% of the company’s sales, and GE HealthCare said in October that macroeconomic weakness in the country negatively affected third-quarter sales.