GEHC•GEHC•RBC Capital Markets initiated coverage of GE HealthCare with an Outperform rating and an $80 price target, citing a record $22 billion backlog roughly matching its expected 2026 revenue and ramped-up R&D since its 2023 separation. The firm projects 4–6% organic revenue growth and high-single to low-double digit earnings growth, driven by AI-enabled imaging, software suites and potential tariff refunds.
RBC Capital Markets began coverage of GE HealthCare with an Outperform rating and set an $80 price target, implying roughly 30% upside. The firm highlighted the company’s focus on AI-enabled imaging, diagnostics and clinical software as catalysts for accelerating revenue and earnings.
Since its 2023 separation from General Electric, GE HealthCare has increased R&D spending, translating into stronger orders and a record $22 billion backlog that mirrors its projected 2026 revenue. This backlog is seen as a key indicator of medium-term growth potential.
The company’s broad AI-driven product slate includes the Photonova Spectra photon-counting CT scanner, Omni Total Body PET/CT system, Flyrcado cardiac PET agent, Vivid Pioneer ultrasound platform and CareIntellect software suite. RBC estimates these launches could add 100–200 basis points of annual revenue growth between 2026 and 2028.
RBC forecasts 4–6% organic revenue growth and high-single to low-double digit EPS growth over the medium term, supported by backlog conversion, software subscriptions and services. The brokerage also sees upside from potential tariff refunds and easing cost inflation, noting the stock trades at about 11 times projected 2027 earnings.
