General Electric Analyst Lifts Price Target After Health Care Segment Update

Kieran Murphy, the CEO of General Electric Company’s GE GE Healthcare division, said in an update that management expects low-to mid-single-digit revenue growth in 2021, given rising COVID-19 cases globally, according to BofA Securities.

The General Electric Analyst: Andrew Obin maintained a Buy on General Electric and raised the price target from $11 to $13.

The General Electric Thesis: COVID-19 has accelerated the adoption of the company’s health care software platform Edison, which includes both GE and third-party software, Obin said in a Friday note. 

“The outlook is also supported by backlog growth and stable trends in scans/machine,” the analyst said. 

“GE is rolling out several new products with artificial intelligence including the first FDA-approved AI-based image reconstruction (Air Recon DL), embedded AI in mobile x-ray scanners (Critical Care Suite) and ultrasound (Logiq E-10),” he said. 

BofA raised its earnings estimates for the fourth quarter by 1 cent to 7 cents per share and for 2021 to 35 cents per share, to reflect “Healthcare’s better trajectory.”

GE Price Action: Shares of General Electric were up 2.82% at $10.90 at last check Friday. 

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