2024-03-13 14:53:40 ET
GE Healthcare Technologies Inc (NASDAQ: GEHC) is in the red today after General Electric Co (NYSE: GE) said it will trim its stake further in the medtech company.
Cramer’s view on GE Healthcare’s secondary offering
General Electric will exchange shares of GE Healthcare for debt that, as per Jim Cramer, removes an overhang from the Nasdaq-listed firm.
upsized its recently announced secondary offering today to 14 million shares. GE Healthcare had climbed the last time General Electric unloaded its shares in February.
Last month, the $40 billion company based out of Chicago, Illinois also reported market-beating financial results for its fiscal fourth quarter. Its guidance, however, came in a bit weaker than expected.
Watch here: https://www.youtube.com/embed/PfL1-o7ySbw?feature=oembedGE Healthcare stock is currently up close to 40% versus its low in late October of 2023.
Is GE Healthcare stock worth buying?
The Mad Money host is bullish on GE Healthcare Technologies Inc as it may continue to benefit from higher hospital volumes moving forward.
Cramer also expects to gain on the back of strong demand for AI enabled imaging equipment. Note that the Charitable Trust does have a position in GE Healthcare.
His view is in line with Sezgi Oezener – an HSBC analyst who recently assumed coverage of GE Healthcare stock with a “buy” rating. His $100 price target suggests close to a 15% upside from here. Ozener’s told clients in a research note last month:
Given company-specific profit drivers (solid management/M&A strategy) and reasonable multiples, we like GEHC’s risk-reward balance, and see upside from its stepped up efforts in AI and innovation.
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