RBC Starts GE HealthCare at Outperform, $80 Target

RBC Capital began coverage of GE HealthCare Technologies with an Outperform rating and an $80 price target. The firm said the stock offers an attractive risk-reward profile.

The analyst pointed to stronger R&D spending and better commercial execution since the company's 2023 separation from General Electric. A solid order backlog should support faster growth later in 2026, RBC Capital said.

GE HealthCare will showcase its latest cloud-enabled enterprise imaging technologies at the SIIM 2026 Annual Meeting this month. Scott Miller, CEO of Solutions for Enterprise Imaging, said the cloud and AI-powered tools can improve efficiency while streamlining imaging workflows. The meeting gives the market a chance to see whether research spending is translating into product wins.

The separation from GE left GE HealthCare with a clearer balance sheet and a focused strategy. GE itself carries an Alpha Score of 51 out of 100 from AlphaScala, rated Mixed in the Industrials sector. The spin-off has allowed the imaging and diagnostics business to invest without competing for capital inside a conglomerate.

For a stock with a defined catalyst path, the key confirmation will be order conversion rates in the second half. If the imaging business shows acceleration as the backlog turns into revenue, the $80 target looks reachable. A disappointing SIIM outcome or a slowdown in the order pipeline would weaken the case.

The SIIM meeting runs through the end of the month. The next hard date is the July earnings report, where backlog conversion will be the metric to track.