Goldman Sachs analyst David Roman has changed his stance on GE Healthcare, expressing optimism about the company's performance in the Chinese market. Roman upgraded the medical technology stock from neutral to buy and raised the price target by $15 to $100, indicating a potential 17.2% increase from Monday's closing price.
Previously, the firm's outlook for GE Healthcare was hindered by challenges in China. However, Roman now believes that sales in the country are stabilizing and could reach 2023 levels by 2026, ahead of initial projections. Additionally, he has revised the earnings per share forecasts for the years 2025 to 2028. Despite concerns about President Donald Trump's tariff policies, Roman remains positive about GE Healthcare's ability to navigate the challenges.
Stabilizing Sales in China
Roman's updated forecast indicates a potential 17.2% increase in GE HealthCare shares from Monday's closing price. He highlighted that the company's sales in China are showing signs of stabilization and could reach 2023 levels by 2026, surpassing previous expectations.
He believes that the company's growth in China and operational efficiency will outweigh any negative impact from tariffs. Roman also noted that GE Healthcare is not uniquely vulnerable to tariffs compared to other companies in the industry. Roman's upgrade aligns with the consensus among analysts, with the majority also recommending buying GE Healthcare shares.
Increased Earnings Projections
In addition to the stock upgrade, Roman has revised the earnings per share forecasts for GE HealthCare for the years 2025 to 2028, demonstrating confidence in the company's growth potential. Goldman Sachs analyst David Roman has upgraded shares of GE HealthCare from neutral to buy, citing an improved outlook on the Chinese market.
He has also raised the price target for the medical technology stock by $15 to $100. Following the news, the stock saw a 1.8% increase in premarket trading on Tuesday and has outperformed the broader market in 2025, gaining over 9% so far.
Tariff Concerns and Market Position
Despite concerns about President Trump's tariff policies, Roman believes that GE HealthCare is well positioned to navigate these challenges. He emphasized that the company's performance in China and operational efficiencies can counterbalance any potential tariff impact.
The medical technology sector has been gaining traction due to increasing demand for advanced healthcare solutions, and this upgrade is likely to attract more investors to the stock. Investors and analysts will be closely watching the stock's performance following this upgrade, as it could indicate a positive trend for the company in the coming months.
Analysts' Consensus and Market Response
Roman's upgrade aligns with the majority of analysts, who also hold buy ratings for GE HealthCare, as reported by LSEG. Following the news of the stock upgrade, shares surged by 1.8% in Tuesday's premarket trading, outperforming the broader market trend.
GE HealthCare has demonstrated resilience in 2025, with a more than 9% increase in its stock value, showcasing positive momentum amid market challenges.
