On Thursday, Jefferies initiated a "hold" recommendation on GE HealthCare shares, with a target price of $80.

In a research note, the financial intermediary points out that the US group holds leading positions in well-established but growing markets such as medical imaging, ultrasound, patient monitoring and diagnostics.

These businesses represent a total market potential of around $84 billion, based on annual growth of 4.5%, or the equivalent of some $100 billion by 2025, not counting adjacencies, which could generate a further $50 billion, Jefferies points out.

Given that GEHC has stated that it is targeting sales growth of around 15% for an adjusted operating margin of 20%, compared with 15% in 2022, the analyst anticipates growth of 13% over the 2023/2025 period, in line with other major medtech groups.

But with a PER of around 17x, Jefferies sees only limited potential for revaluation at current levels.

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