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UBS upgraded GE HealthCare (NASDAQ:GEHC) to Neutral from Sell and raised its price target to $88 from $66 per share on Monday, citing a better margin outlook for the medical equipment maker.
The upgrade comes days after GE HealthCare (GEHC), a Chicago, Illinois-based spinoff of General Electric (GE), topped Street forecasts with its financials for Q4 2023 and set its guidance ahead of consensus.
“Whilst we continue to be below mid-term company margin guidance driven by our benchmarking work for the imaging business, we do not think this is a risk that will materialize in the near term,” UBS analyst Graham Doyle wrote.
He shed his previous concerns about GEHC’s near-term margin expansion and argued that the company’s 2024 guidance indicated improving margins due to a better product mix and cost savings.
With its financials last week, GE HealthCare (GEHC) projected 15.6%–15.9% in adj. EBITDA margin for this year, up from 15.1% last year.
