General Electric Analyst Lifts Price Target After Health Care Segment Update

Kieran Murphy, the CEO of General Electric Company’s (NYSE: GE) GE Healthcare division, said in an update that management expects low-to mid-single-digit revenue growth in 2021, given rising COVID-19 cases globally, according to BofA Securities.

The General Electric Analyst: Andrew Obin maintained a Buy on General Electric and raised the price target from $11 to $13.

The General Electric Thesis: COVID-19 has accelerated the adoption of the company’s health care software platform Edison, which includes both GE and third-party software, Obin said in a Friday note. 

“The outlook is also supported by backlog growth and stable trends in scans/machine,” the analyst said. 

“GE is rolling out several new products with artificial intelligence including the first FDA-approved AI-based image reconstruction (Air Recon DL), embedded AI in mobile x-ray scanners (Critical Care Suite) and ultrasound (Logiq E-10),” he said. 

BofA raised its earnings estimates for the fourth quarter by 1 cent to 7 cents per share and for 2021 to 35 cents per share, to reflect “Healthcare’s better trajectory.”

GE Price Action: Shares of General Electric were up 2.82% at $10.90 at last check Friday. 

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