GE HealthCare draws Equal Weight rating at Morgan Stanley on valuation
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Morgan Stanley initiated its coverage of GE HealthCare Technologies (NASDAQ:GEHC) with an Equal Weight rating and a $76 per share price target on Tuesday, referring to in-line estimates and valuations for the MedTech giant on Wall Street.
Arguing that the end-market for imaging has been generally non-cyclical, the analyst Patrick Wood points to strong Q1 numbers for GEHCâs capital-heavy peers such as Phillips (PHG), and Siemens Healthineers (OTCPK:SEMHF) (OTCPK:SMMNY).

Wood refers to a survey of healthcare providers to note that hospital executives have continued to focus on imaging-CAPEX, albeit at a lower level than in 2022.
"Overall then, we see the demand picture for GEHC in good shape and organic growth expectations of +4-5% as well underpinned," the analyst added.
On valuation, Wood notes that GE HealthCare (GEHC) is trading roughly on par with its radiology rival Siemens Healthineers (OTCPK:SEMHF) for 2027, with approximately a 5% discount on 2024 P/E and EV/EBITDA blend.

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