When GE (NYSE:GE) broke up and formed healthcare stock GE Healthcare (NASDAQ:GEHC), some wondered if the outcome would result in thriving companies or a name stricken from the American business landscape. But GE Healthcare is making a go of it and bringing out some ambitious new plans.
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GE Healthcare inked a deal with the Biomedical Advanced Research and Development Authority (BARDA) to build new ultrasound technology that comes with artificial intelligence support. The deal is valued at $44 million and will ultimately not only develop that new technology, but also get it through regulatory clearances.
With these new devices, physicians will be able to accomplish a wide range of tasks. One of the biggest new functions of these devices is improved trauma triage and treatment, which is vital in a series of life-and-death situations. With the AI augmentations, meanwhile, users will be able to put the devices to work regardless of skill level, which makes them much more accessible and improves the potential market size.
Is GE Healthcare a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GEHC stock based on seven Buys and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average GEHC price target of $87.89 per share implies 31.71% upside potential.
