: GE HealthCare’s stock slides premarket after UBS downgrade to sell

GE HealthCare Technologies Inc.’s stock GEHC fell 2.8% in premarket trade Monday, after UBS downgraded the stock to sell from neutral and cut its price target to $66 from $86. Analysts led by Graham Doyle said a combination of slower order momentum, tough comparables and a lack of pricing tailwinds has left them below consensus on certain earnings metrics. “Our analysis of GEHC’s order intake and the broader market suggests the 3% growth seen YTD is set to worsen in Q4. This combined with a lack of pricing tailwinds in 2024 and toughening end-markets in Patient Care means we are 1% below consensus 2024 revenues and 4% below adjusted EBIT,” the analysts wrote in a note to clients. If China device installations are as effected as peer Siemens Healthineers XE:SHL is suggesting, UBS said there’s further 2.5% downside to its 2024 EBIT forecast. The analysts said it expects it would take several years of higher R&D costs before the company can credibly compete in the premium end of the imaging market. GE HealthCare stock has gained 26% in the year to date, while the S&P 500 SPX has gained 18.8%.

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