Key insights
- Goldman Sachs maintained a Neutral rating on GE HealthCare (GEHC) with a $65.00 price target, noting the stock is nearly aligned with their target. While the company's 2026 organic revenue guidance of 3-4% is supported by backlog and installations, Goldman Sachs believes sustainable outperformance requires 4-6% top-line growth. Despite recent Q1 revenue beating estimates, EPS fell short. The firm sees balanced risk and reward, indicating limited immediate impact on broader US equity markets.
Investing.com - Goldman Sachs reiterated a Neutral stock rating on GE HealthCare (NASDAQ:GEHC) with a $65.00 price target. The stock currently trades at $64.67, nearly aligned with Goldman’s target, though InvestingPro analysis suggests the company remains undervalued at current levels.
The firm hosted investor meetings in Boston last week with Jay Saccaro, Vice President and Chief Financial Officer; Phil Rackliffe, President and CEO of Advanced Imaging Solutions; and Carolynne Borders, Chief Investor Relations Officer.
Goldman Sachs expressed confidence in the company’s current 2026 organic revenue guidance of 3-4%. Trailing order growth, backlog, and planned installations support the outlook despite guidance calling for a modest acceleration in the second half against tougher comparisons. The company has demonstrated solid execution with revenue growth of 5.96% over the last twelve months on a base of $20.98 billion, though 14 analysts have recently revised their earnings downwards for the upcoming period, according to InvestingPro Tips.
The firm’s analysis suggests the company has left cushion in its raw material inflation assumptions as several major input costs are down over the past month. Goldman Sachs believes sustainable outperformance in GE HealthCare shares requires top-line growth acceleration to the 4-6% range.
The company has set forth several drivers that should make 2027 a stronger year. Goldman Sachs maintains its Neutral rating as it sees risk and reward balanced in the context of its broader medical technology coverage.
In other recent news, GE HealthCare has reported its first-quarter fiscal 2026 results, revealing revenues of $5.13 billion, which represents a 2.9% organic growth year-over-year. This figure slightly surpassed Oppenheimer’s estimate of $4.96 billion and the consensus of $5.03 billion. However, the company’s adjusted earnings per share were $0.99, falling short of both Oppenheimer’s and consensus estimates of $1.05. In addition, Oppenheimer has adjusted its price target for GE HealthCare to $85 from $89, maintaining an Outperform rating.
Meanwhile, UBS has upgraded GE HealthCare’s stock rating to Neutral from Sell, although it lowered the price target to $69 from $75. The firm noted that the shares have declined approximately 30% since January, returning to near IPO levels. On the technological front, GE HealthCare received FDA clearance for its AI-enabled auto-contouring software, MIM Contour ProtégéAI+ 2.0, designed to aid radiation oncology care teams. Furthermore, the company unveiled advancements in magnetic resonance imaging systems at the International Society for Magnetic Resonance in Medicine Annual Meeting, with new technology pending FDA approval. Additionally, GE HealthCare shareholders elected eight directors and approved executive pay and auditor at the company’s recent annual meeting.
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