BofA starts GE HealthCare at neutral, sees margin upside priced in
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BofA Securities has initiated coverage of GE HealthCare (NASDAQ:GEHC) with a neutral rating, stating that it sees margin upside already priced into the shares.
The investment bank said that while GEHC has a "compelling" margin improvement story, its multiple has neared the peer group average. 
"We prefer to see more progress toward margin goals before ascribing GEHC a multiple in line with or even at a premium to large cap peers," the analysts said in a note dated July 31.
BofA analysts also said they view GEHC as more vulnerable to an economic downturn than other large cap medtechs as around 50% of its sales are for large capital equipment. While hospital capital budgets currently look stable, they could be negatively impacted down the road by regulatory or macroeconomics changes, they added.
The investment bank set its price objective for GEHC at $82.
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