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On Friday, BTIG analyst Ryan Zimmerman maintained a Buy rating for GE HealthCare (NASDAQ:GEHC) with a steady price target of $103.00, despite new challenges arising from increased tariffs imposed by China. The stock, currently trading at $62.91, has fallen over 10% in the past week, with InvestingPro data showing technical indicators suggesting oversold conditions. The tariffs, a 34% increase on all imports from the United States, bring the total to approximately 54% after two previous 10% increases. Additionally, China’s Ministry of Commerce has initiated an anti-dumping probe into medical CT tubes imported from the U.S. and India.
Zimmerman highlighted GE HealthCare’s long-standing presence in China, noting that the country accounts for roughly 12% of the company’s FY24 sales. The healthcare giant, with a market capitalization of $32.9 billion and annual revenue of $19.7 billion, has been operating in China for a century, with 30 years of manufacturing experience in the region. Approximately 70% of the products GE HealthCare manufactures in China are sold within the country. The company’s main product categories in China are Imaging, which is the largest segment, followed by Ultrasound and Patient Care Solutions.
The analyst pointed out that the outcome for GE HealthCare could hinge on whether the CT tubes in question are imported into China or produced locally. The perception of GE HealthCare and other multinational corporations by the Ministry as local entities could also influence the impact of any regulatory decisions on the company’s ability to participate in tender processes and sales within this vital market.
Zimmerman expressed the belief that the situation will likely unfold gradually and be influenced by larger macroeconomic factors, such as the ongoing trade negotiations between the U.S. and China. The analyst’s reiteration of the Buy rating suggests confidence in GE HealthCare’s ability to navigate these new regulatory challenges. According to InvestingPro analysis, the stock appears undervalued at current levels, with 12+ additional exclusive insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, GE HealthCare announced a first-quarter dividend of $0.035 per share, payable to shareholders of record as of April 25, 2025. The company also unveiled its latest computed tomography system, Revolution Vibe, at the American College of Cardiology 2025 meeting. This system is designed to enhance cardiac imaging technology, featuring AI solutions to improve diagnostic processes. Moreover, GE HealthCare has partnered with NVIDIA (NASDAQ:NVDA) to advance AI imaging technologies, focusing on X-ray and ultrasound systems to alleviate staff shortages and streamline workflows. Additionally, GE HealthCare introduced the Genesis portfolio, a suite of cloud-based imaging solutions, to enhance healthcare efficiency and reduce operational costs. The Genesis suite will be showcased at the upcoming HIMSS 2025 conference. Meanwhile, technical strategist Jonathan Krinsky from BTIG noted GE HealthCare as a ’pre-breakout candidate’ in the healthcare sector, which is currently leading the S&P 500. These recent developments highlight GE HealthCare’s ongoing efforts in innovation and collaboration within the medical technology field.
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