GE HealthCare Technologies Is Innovating An $84B Market And This Analyst Is Bullish

Shares of GE HealthCare Technologies Inc (NASDAQ: GEHC) rose in early trading on Tuesday, just days after the company presented at the European Society for Therapeutic Radiology and Oncology 2023 Congress.

Oppenheimer analyst Suraj Kalia initiated coverage of GE HealthCare Technologies with an Outperform rating and a price target of $97.

The GE HealthCare Technologies Thesis: The global diagnostic imaging, screening and patient care market is currently estimated at $84 billion.

The sector is expected to expand at a 4%-6% CAGR (compounded annual growth rate) over the next five years, driven by an aging population and increased incidence of chronic diseases, Kalia explained.

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“CAGR in developed markets is estimated at 2-4%, driven by a replacement cycle, whereas emerging markets at 5-8% is de novo,” he said. “GE's innovation, such as real-time 4D ultrasound, Air Recon DL in MRI, non-Gd contrast agents, AI-enabled workflow systems, among others, has been industry defining."

A continued shift to AI-enabled devices and services provides tailwinds "unique to GE,” Kalia added.

Field checks indicate a significant increase in GE HealthCare Technologies’ customer engagement versus five to 10 years ago.

GEHC Price Action: Shares of GE HealthCare Technologies had risen by 1.60% to $76.13 at the time of publishing Tuesday.