Wells Fargo starts GE HealthCare at overweight, sees increased imaging demand
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Wells Fargo initiated coverage of GE HealthCare (NASDAQ:GEHC) with an overweight rating, stating that it sees the company benefiting from an expected rise in hospital capital spending and increased demand for imaging procedures due to the recent FDA approval of Biogenâs (BIIB) Alzheimerâs drug Leqembi.
The analysts said that a recent survey showed that hospital spending is expected to climb by 1.5% in 2024 over 2023, with cardiovascular ultrasound and MR being high priority investments.
Wells Fargo added that GE HealthCare was âwell positionedâ to capitalize on the approval of Leqembi as the drug requires patients to undergo multiple MRI and PET scans. The investment bank sees the market opportunity generating incremental revenue of around $47M in 2024, eventually reaching approximately $493M by 2027, assuming that around 50% of the additional scans will be absorbed into existing capacity. 
Wells Fargo set its price target for the stock at $90. 

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