GEHC Could Be Set For A Turnaround — Needham Sees 44% Upside For GE Healthcare After Nearly 21% YTD Slide

Needham initiated coverage with a ‘Buy’ rating and $93 price target, putting GEHC among the stocks it expects to outperform.

• Needham projects mid-single-digit revenue growth and high-single-digit EPS growth over the next year.
• Stocktwits retail sentiment remained ‘bullish,’ while message volume was ‘normal’ at the time of writing.
• Koyfin data shows 14 of 19 analysts rate GEHC ‘Buy’ or ‘Strong Buy.’

GE Healthcare (GEHC) shares were moving higher on Tuesday after Needham reportedly said the med-tech company could be entering a turnaround phase following a difficult year. The research firm sees room for stronger growth and a higher valuation, initiating coverage with a ‘Buy’ rating and a $93 price target, which represents around 44% upside from Monday’s close.

At the time of writing on Tuesday afternoon, GEHC stock was up around 2.5%.

Better Growth Outlook

Needham expects GE Healthcare Technologies to deliver mid-single-digit revenue growth and high-single-digit earnings-per-share growth over the next year. The firm also expects the stock to see “modest multiple expansion” as growth improves, according to a CNBC report.

Its base case calls for GEHC to trade at 17 times its 2027 earnings estimates, compared with a current forward multiple of 12.6, according to FactSet.

Needham pointed to the company’s capital book-to-bill as an indicator of its capital growth outlook. Based on that relationship, Needham expects GE Healthcare’s Advanced Imaging Solutions (AIS) business growth to accelerate in 2027. 

Needham’s bull-bear analysis also found that GEHC shares are largely pricing in a bear-case scenario.

GEHC Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for GEHC remained ‘bullish,’ unchanged in the past 24 hours, while message volume was ‘normal’ at the time of writing.

Needham’s call is broadly consistent with the existing analyst view on GE Healthcare. According to data from Koyfin, 14 of the 19 analysts covering GEHC rate it ‘Buy’ and ‘Strong Buy,’ while five rate it ‘Hold.’ The 12-month average target on the stock is $82.50, representing a potential upside of around 27% from the last close.

GEHC shares are down nearly 21% year to date after the company missed earnings expectations and issued lackluster financial outlooks amid supply constraints and other issues. 

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