GE HealthCare is a new Buy at Oppenheimer, analysts see 30% upside

Oppenheimer analysts initiated research coverage of GE HealthCare (NASDAQ:) with a Buy rating and a $97 per share price target.

The target implies an upside potential of about 30% relative to yesterday’s closing price.

GE HealthCare, which was spun off by General Electric (NYSE:) earlier this year, is described as “the global leader in healthcare diagnostics, imaging, and intervention.”

“GE’s unparalleled depth and breadth of products in X-rays, CT, MRI, ultrasound, services, and digital solutions provide a unique ecosystem allowing multiple touch points along the continuum of care. Following its recent spin-out from the parent company, a more focused GE has emerged with a strategic outlook of a 4-6% revenue CAGR, adjusted EBIT margins of high-teens to twenty percent, and FCF generation of 85%+,” analysts said in a client note.

Hence, analysts are positive on GEHC shares as the company operates in attractive markets while being financially disciplined.

GEHC shares are up 0.5% in pre-market Tuesday.