Last Update 22 Nov 25
Fair value Increased 2.59%GEHC: Order Backlog And Margin Expansion Will Drive Upside Despite China Risk
The analyst price target for GE HealthCare Technologies has increased modestly to $89.21 from $86.96, reflecting analysts' confidence in the company's achievable revenue growth, margin improvement, and a supportive overall demand environment, even though there are mixed views on near-term challenges.
Analyst Commentary
Recent analyst updates highlight a mix of confidence and caution regarding GE HealthCare Technologies' outlook. Below is a summary of key perspectives based on the latest Street research.
Bullish Takeaways
- Bullish analysts see continued potential for achievable organic revenue growth, citing a supportive demand environment and the company's consistent performance history.
- Expectations remain positive for solid order backlog. Industry surveys suggest a healthy spending environment among hospitals.
- There is upside risk to long-term growth from innovation, such as photon counting. Mid-term margin improvement targets are viewed as sensible.
- Recent earnings slightly surpassed expectations, which reinforces optimism around execution and future growth prospects.
Bearish Takeaways
- Some caution remains regarding short-term challenges, including ongoing policy and regulatory hurdles in key markets like China.
- Rolling pricing pressures and sector-specific reforms have created persistent headwinds. These factors raise questions about sustainable profitability in certain regions.
- Bearish analysts have trimmed price targets due to potential execution risks and a need for further clarity on growth initiatives and international strategy.
What's in the News
- GE HealthCare is considering options for its China business, including a potential stake sale valued at several billion dollars (Bloomberg).
- Volta Medical has launched its first U.S. electrophysiology software developed with GE HealthCare, which integrates AI-driven insights into GE’s CardioLab AltiX AI.i EP system to advance AF ablation care.
- Cardiovascular Associates of America plans to expand use of GE HealthCare's FDA-approved PET radiotracer, Flyrcado, to approximately 25 sites after a successful pilot rollout.
- GE HealthCare aims to broaden its strategic collaboration with DeepHealth to accelerate innovation and adoption of AI tools for breast cancer care and ultrasound imaging worldwide.
- From July to September 2025, the company repurchased 1,389,213 shares for $100 million and completed a $200 million buyback as of September 30, 2025.
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $86.96 to $89.21.
- Discount Rate has moved higher, up from 8.07 percent to 8.40 percent.
- Revenue Growth projections have edged lower, shifting from 4.38 percent to 4.28 percent.
- Net Profit Margin estimates have improved moderately, rising from 11.06 percent to 11.47 percent.
- Future P/E ratio has decreased marginally, moving from 19.89x to 19.42x.
Key Takeaways
- Expansion through partnerships and growing market share is likely to drive revenue growth and enhance revenue stability.
- New technologies and acquisitions in diagnostics are positioned to significantly boost future revenue and earnings.
- Tariffs and regulatory uncertainties may hinder earnings and revenue growth, with competitive pressures impacting market share and cash flow constraints limiting financial flexibility.
Catalysts
About GE HealthCare Technologies- Engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, and internationally.
- Expansion of market presence, driven by new partnerships with top IDNs and increased market share, is likely to boost future revenue growth.
- Ongoing mitigation strategies for tariff impacts, including supply chain optimization and local manufacturing shifts, are expected to enhance net margins and earnings.
- The pipeline of new high-impact products, like Radiopharmaceuticals, Total Body PET, and Photon Counting CT, is anticipated to drive future revenue growth and potentially improve margins.
- The focus on expanding recurring revenue, particularly in areas like digital solutions and advanced visualization, is expected to contribute positively to revenue stability and net margins.
- The launch of Flyrcado and recent acquisition activities are aimed at bolstering revenue streams in pharmaceutical diagnostics, which may contribute to overall revenue and earnings growth.
GE HealthCare Technologies Future Earnings and Revenue Growth
Assumptions
How have these above catalysts been quantified?- Analysts are assuming GE HealthCare Technologies's revenue will grow by 4.3% annually over the next 3 years.
- Analysts assume that profit margins will shrink from 11.2% today to 11.0% in 3 years time.
- Analysts expect earnings to reach $2.5 billion (and earnings per share of $5.51) by about September 2028, up from $2.2 billion today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as $2.0 billion.
- In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 20.2x on those 2028 earnings, up from 16.0x today. This future PE is lower than the current PE for the US Medical Equipment industry at 29.7x.
- Analysts expect the number of shares outstanding to decline by 0.07% per year for the next 3 years.
- To value all of this in today's terms, we will use a discount rate of 8.05%, as per the Simply Wall St company report.
GE HealthCare Technologies Future Earnings Per Share Growth
Risks
What could happen that would invalidate this narrative?- The impact of tariffs, particularly between the U.S. and China, poses significant risk, with $0.85 impacting adjusted EPS, which could hinder margins and earnings.
- The uncertainty and potential regulatory changes in China, including antidumping investigations and rare earth export limitations, may impact revenue growth from this important market.
- The company faces challenges from competitor advancements in their product pipeline, which may put pressure on maintaining or increasing market share, affecting future revenues.
- Free cash flow has been reduced largely due to tariff impacts and inventory build, which may constrain operational liquidity and financial flexibility.
- While there is confidence in market demand, changes in the macroeconomic landscape, including global trade policies and foreign exchange volatility, can introduce significant earnings and margin risks.
Valuation
How have all the factors above been brought together to estimate a fair value?- The analysts have a consensus price target of $88.0 for GE HealthCare Technologies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $106.0, and the most bearish reporting a price target of just $73.0.
- In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $22.7 billion, earnings will come to $2.5 billion, and it would be trading on a PE ratio of 20.2x, assuming you use a discount rate of 8.0%.
- Given the current share price of $78.71, the analyst price target of $88.0 is 10.6% higher.
- We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.
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AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.