Stifel starts GE Healthcare at buy, cites growth potential (NASDAQ:GEHC)

Stifel has started GE HealthCare (NASDAQ:GEHC) with a buy rating, citing its potential for steady growth.

The investment bank said the company was off to a “solid post-spin start” and was on track to achieve around $19.7B in sales in 2024. It added the company’s end markets totaled around $87B and were expected to grow in the mid-single digits annually.

“To us, GEHC represents a classic MedTech spin-off story poised to benefit from: improved management/commercial execution, stronger cost reduction focus, optimized innovation-related investments, and growth/margin-enhancing M&A,” wrote the analysts in their note.

“We believe the GEHC stage is set favorably for continued mid-single-digit ((or better)) growth, meaningful operating margin expansion, and strong FCF generation,” they added.

Stifel set its price target for the stock at $100.