The analyst downgrades his opinion on the stock to Sell (from Neutral) and his price target to 74 E (from 84 E), which represents a potential downside of -20%.
UBS believes that earnings are taken into account but risks are not.
'GE Healthcare's medium-term margin forecasts are exaggerated and the risks related to China are significant. Forecasts are reduced to 3-6% below consensus' says UBS.
GE Healthcare has reaffirmed its annual adjusted EPS target range of $4.20-$4.35, and adjusted adjusted EBIT margin upwards to 15.7-16%, but revised organic revenue growth downwards to +1-2%, 'due to headwinds in China'.
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