UBS Flips GE HealthCare (GEHC) From Sell to Neutral After a 30% Stock Decline

UBS Flips GE HealthCare (GEHC) From Sell to Neutral After a 30% Stock Decline Abdul Rahman Wed, May 27, 2026 at 11:56 PM GMT+2 2 min read GEHC UBS GE HealthCare Technologies Inc. (NASDAQ: GEHC ) is one of the best medical technology stocks to buy right now . On May 21, UBS upgraded GE HealthCare Technologies Inc.

(NASDAQ:GEHC) to Neutral from Sell and lowered its price target to $69 from $75. UBS Flips GE HealthCare (GEHC) From Sell to Neutral After a 30% Stock Decline ldutko/Shutterstock. com The firm noted that GE HealthCare’s stock valuation fell by about 30% and that this drop is large enough to no longer justify an outright bearish position.

GE HealthCare’s shares were trading at around $64 at the time of the note, which was near their 52-week low of $58. 75. As a result, UBS concluded that much of the downside it had previously flagged is now reflected in the stock price.

The reason the shares declined that much was Q1 2026 earnings that the market thought were quite disappointing. In the report, the company said it posted $5. 1 billion in quarterly revenue, up 2.

9% year over year (organic) and slightly ahead of consensus. However, the adjusted EPS came in at $0. 99 against an expected $1.

05, as rising costs tied to memory chips, oil prices, and freight weighed heavily on margins. Management noted that a supplier recall added further pressure to margins in Q1. This development compounded the inflation-driven cost increases and left management little room to offset the headwinds in the short term.

Though GE HealthCare’s leadership maintained at the Bank of America Global Healthcare Conference in May that the company’s long-term growth trajectory remains intact and that cost initiatives, pricing actions, and new product launches should help restore margin improvement through the rest of the year. GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a medical technology company that provides diagnostic imaging, patient monitoring, pharmaceutical diagnostics, and healthcare digital solutions to hospitals and healthcare providers worldwide.

Its product portfolio includes MRI, CT, ultrasound, X-ray, and molecular imaging systems. While we acknowledge the potential of GEHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the   best short-term AI stock .

READ NEXT:  7 Best Augmented Reality Penny Stocks to Buy and 10 Best Gene Therapy Stocks to Buy in 2026 . Disclosure: None. Follow Insider Monkey on Google News .