SEMHF - Despite Strong Upside GE HealthCare Warrants A Downgrade On Guidance Concerns

2024-06-17 10:27:16 ET

Summary

• GE HealthCare Technologies shares have dropped 16.8% since March, driven by concerns about management hitting guidance for 2024.
• Revenue for the company declined 1.2% in Q1 2024 compared to the same period last year, with a drop in product sales.
• Despite the recent underperformance, the stock is still considered cheap and may warrant a higher price in the future.

Earlier this year, I decided to revisit one of the companies that was spun off from the former conglomerate known as General Electric. That happens to be the healthcare side of the firm, known today as GE HealthCare Technologies ( GEHC ). From the time I had rated it a ‘strong buy’ in December of last year through the time that my article was published in March, shares had seen an upside of 35.7%. And since I first rated it a ‘strong buy’ in early January of 2023, shares had soared by 55.4%. In my most recent article on the company, I made the claim that the firm’s ‘roar higher’ wasn't over yet....

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