Overview
Piper Sandler has increased its price target for GE HealthCare (NASDAQ:GEHC) to $94.00 from $91.00 while keeping an Overweight rating on the stock. The firm’s revised target sits near the middle of the analyst consensus range, which spans from $77 to $108, per InvestingPro data.
Ahead of fourth-quarter results
The research house conveyed a constructive view of the company’s prospects ahead of GE HealthCare’s scheduled fourth-quarter earnings release on January 30. Piper Sandler noted that shares have retreated recently amid uncertainty around guidance for Flyrcado, but expects the business unit to still provide incremental revenue contribution in 2026.
Analysts covering the stock are forecasting full-year earnings per share of $4.58, while Piper Sandler highlighted management’s recent track record on margin and EPS delivery as a factor supporting its stance.
Operational performance and margins
Piper Sandler called attention to GE HealthCare’s mid-single-digit order growth measured on both a trailing 12-month and a trailing 24-month basis. The firm pointed to the company’s recent execution as evident in a strong 40.8% gross profit margin and a diluted EPS of $4.83 over the last twelve months. These metrics underpin the research team’s view on the company’s unit economics and profitability profile.
Valuation argument
The firm described GE HealthCare’s valuation as undemanding, noting the stock is trading at under 16 times next-twelve-months price-to-earnings for what Piper Sandler characterizes as a low double-digit EPS grower. InvestingPro analysis cited a PEG ratio of 0.5, indicating a relatively low price-to-earnings multiple relative to near-term earnings growth, a point the research firm used to recommend that investors maintain long positions before the upcoming earnings announcement.
Shifts in geographic impact
Piper Sandler also observed that China is becoming less impactful to GE HealthCare’s business model, a trend the firm views as favorable for the company. At the same time, the research team expects Flyrcado to remain an incremental revenue contributor in 2026 despite current guidance-related uncertainty.
Recent analyst moves and company developments
Other brokerages have adjusted their views recently. UBS downgraded its rating from Neutral to Sell on valuation concerns while raising its price target to $77. Stifel kept a Buy rating and raised its price target to $95, citing robust demand in the medical technology sector. Jefferies increased its target to $105 and maintained a Buy rating following discussions with GE HealthCare’s management.
Separately, GE HealthCare alerted investors to an unsolicited mini-tender offer from Potemkin Limited that was significantly below the prevailing market price. The company also announced a partnership with NXP Semiconductors to develop edge AI solutions for medical applications, with initial focus areas including anesthesiology and neonatal care.
Context for investors
Taken together, Piper Sandler’s price target increase and the broader analyst activity underscore a mix of supportive operational metrics, cautious guidance-related uncertainty, and active corporate developments. Investors will be watching the January 30 earnings release for clarity on Flyrcado guidance and how management plans to translate order momentum and margin strength into forward earnings.
Note: This article presents reported analyst actions, company metrics, and recent corporate developments as described by market participants.