GE HealthCare upgraded to Neutral from Sell at UBS

UBS upgraded GE HealthCare to Neutral from Sell with a price target of $88, up from $66. The firm had believed that a lack of margin expansion near-term would drive a higher degree of investor scepticism on the mid-term margin targets at GE HealthCare, which in turn could drive a de-rating, but management provided “credible margin guidance” along with FY23 results that imply 50-80 basis points of expansion despite limited revenue growth, the analyst tells investors. While the firm continues to be below mid-term company margin guidance driven by its benchmarking work for the Imaging business, it does not think this is a risk that will materialize in the near-term, the analyst added.