GE HealthCare Initiated at Outperform With $80 Target, Citing $22B Backlog
GE•RBC Capital Markets initiated coverage of GE HealthCare Technologies with an Outperform rating and an $80 price target, citing a record $22 billion backlog equal to expected 2026 revenue. The firm forecasts 4%-6% organic revenue growth, $4.91 in 2026 EPS and 30% upside from AI-enabled imaging, diagnostics and software launches.
1. Coverage Initiation and Rating
RBC Capital Markets launched coverage of GE HealthCare Technologies with an Outperform rating and set an $80 share price target, highlighting accelerating innovation, improving margins and ongoing share repurchases as key drivers for a projected 30% upside.
2. AI-Enabled Product Pipeline and Backlog
The firm pointed to increased R&D spending since the 2023 separation, resulting in a broad suite of AI-enabled offerings and a record $22 billion backlog—roughly equivalent to forecast 2026 revenue—driven by Photonova Spectra CT, Omni Total Body PET/CT, Flyrcado PET agent, Vivid Pioneer ultrasound and CareIntellect software.
3. Financial Projections and Valuation
RBC expects 4%–6% organic revenue growth and high-single- to low-double-digit earnings expansion, forecasting $4.91 adjusted EPS in 2026 and $5.45 in 2027. With recurring revenue poised to rise from 50% to 60% of sales and valuation at about 11 times 2027 earnings, the brokerage sees upside from lower inflation and potential tariff refunds.
