Analyst Initiates Coverage of GE Healthcare, Says' Path To Greatness Well-Paved'

Mizuho Securities initiated coverage on GE Healthcare Technologies Inc GEHC with a Buy rating and a price target of $90.
Last month, General Electric Company GE completed the previously announced spin-off of its healthcare unit.
Positive feedback from a proprietary survey points toward the demand for additional US hospital imaging capacity and a return to double-digit growth in imaging procedures.
Despite staffing constraints, radiology volumes are expected to improve by +6-8% in 2023. The analyst writes that bullish findings support our +6% organic top-line growth forecast over the next 2+ years.
Also Read: GE HealthCare Clocks $5B In Q4 Sales On Strong End Market Demand, Reaffirms Annual Guidance.
Significant upside potential in demand for MRI brain scans among active users of newly approved Biogen Inc's BIIB Leqembi Alzheimer's disease, writes the analyst in a note titled 'GE Healthcare Reboot Underway With Path to Greatness Well-Paved.'
The capacity needs for MRI brain scans point toward additional ~400k scans by 2025 and nearly a ~3.0x increase over the next seven years.
If Leqemb also secures EU and Japan market clearances with favorable reimbursement, Mizuho estimates up to $1 billion of MRI capital demand in relatively short order from this single drug launch.
Price Action: GEHC shares are trading up 1.79% at $72.18 on the last check Friday.

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