Last week, U.S. President Donald Trump vowed to impose a 25% tariff on imported goods from Mexico and Canada and to double tariffs on those from China to 20%.
China responded to Trump’s recent tariff hikes by placing its own tariffs on certain U.S. goods, sanctioning American companies, and planning to file a complaint with the World Trade Organization.
China also banned imports of genetic sequencers from Illumina Inc ILMN.
Also Read: Why Is GE HealthCare Stock Trading Soaring On Thursday?
Goldman Sachs has grown more confident that end markets are stabilizing and set for a recovery in 2025, despite ongoing policy and tariff uncertainties. Rising demand and increased stimulus are helping ease market bottlenecks.
Following a visit to China, Goldman Sachs analysts see capital equipment markets at a turning point and write that innovation remains a key advantage.
They are also optimistic about GE Healthcare Inc GEHC and Boston Scientific Corporation BSX in the region.
While Intuitive Surgical Inc ISRG offers unique technology, economic constraints, and national quotas may limit its growth. Meanwhile, local competition is expanding quickly, but Goldman Sachs sees limited impact due to a lack of technological differentiation. As a result, analyst David Roman upgraded GE Healthcare stock from Neutral to Buy, raising the price target from $85 to $100.
The analyst has a balanced view on GE Healthcare with stable 4-5% growth in the base business (ex-China), offset by sustained headwinds in the China business (~14% of sales), which would yield top-line growth below consensus and the company’s medium targets of 4-6% organic revenue growth.
The forecast increase is due to stabilizing trends in China. The analyst expects China sales to return to 2023 levels by 2026, unlike the previous forecast, which did not anticipate a rebound through 2028.
Price Action: GEHC stock is up 0.45% at $85.74 at the last check Tuesday.
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