GE HealthCare Technologies (GEHC)
Healthcare
GEHC boasts an extremely strong competitive position, including its large install base, proven track record of new product introductions, service capabilities, supply chain and regulatory infrastructure, and IP. 50% of GEHC's revenues are recurring, coupled with minimal capital intensity, provides meaningful cash flow visibility. The healthcare industry in which the company operates currently has a TAM of $84bn, a figure projected to increase to $100bn by 2025. Expanding into adjacencies could increase this number by another $50bn in the coming years. The share overhang associated with General Electric’s retained stake in GEHC should soon be alleviated. TP $95 (45% upside).
Edition: 172
- 27 October, 2023