BTIG reiterates buy rating on GE HealthCare stock, citing stable growth

Published 16/06/2025, 12:00
BTIG reiterates buy rating on GE HealthCare stock, citing stable growth

BTIG maintained its buy rating and $82.00 price target on GE HealthCare (NASDAQ:GEHC) on Monday, highlighting the company’s stable growth trajectory compared to competitors in the medical imaging sector. With a market capitalization of $33 billion and trading at a P/E ratio of 14, InvestingPro analysis suggests the stock is currently undervalued, supporting BTIG’s bullish stance.

The research firm conducted an analysis of imaging order trends across GE HealthCare, Siemens (ETR:SIEGn) Healthineers (SMMNY), and Philips (PHG) following GE HealthCare’s first-quarter 2025 earnings report. BTIG’s assessment focused on order growth trajectories, market expansion, and backlog execution across the imaging equipment landscape.

GE HealthCare demonstrated "far more stable" performance compared to its peers, according to BTIG’s analysis. The firm attributed this stability to GE HealthCare’s increasing IDN contracts, higher service and software offerings, and favorable backlog dynamics, contrasting with Siemens Healthineers’ quarter-to-quarter volatility and Philips’ weakness. This stability is reflected in the company’s GOOD Financial Health Score from InvestingPro, with particularly strong marks in profitability metrics.

BTIG emphasized that order growth serves as a meaningful indicator of future revenue growth, particularly for companies with significant capital equipment exposure and long revenue recognition cycles due to installation timelines. The firm noted that GE HealthCare has delivered above-market growth in six out of the last nine quarters.

GE HealthCare is positioned for positive performance in the second half of 2025, according to BTIG, which cited favorable comparisons and increasing market share as key factors supporting its outlook for the medical technology company. With annual revenue of $19.8 billion and strong profitability indicators, the company shows promising fundamentals. For a deeper understanding of GE HealthCare’s potential, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s financial health, valuation metrics, and growth prospects.

In other recent news, GE HealthCare Technologies Inc. reported robust financial results for the first quarter of 2025, with a notable 4% organic revenue growth, reaching $4.8 billion. The company also saw a 12% year-over-year increase in adjusted earnings per share, which rose to $1.01. GE HealthCare achieved a record backlog of $20.6 billion, highlighting strong demand in the U.S. and European markets. Additionally, the company issued $1.5 billion in senior unsecured notes, further aligning with its capital management strategy. In corporate governance updates, GE HealthCare secured stockholder approval for executive compensation and the re-election of 10 directors during its annual meeting. The company also announced the integration of its proprietary features with MIM Encore software, enhancing digital imaging and workflow solutions across several medical departments. These developments reflect GE HealthCare’s strategic initiatives and ongoing efforts to innovate and expand its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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