UBS downgraded GE HealthCare to 'sell' from 'neutral', citing valuation concerns even after raising its 12-month price target to $77. Shares were trading at $84.77, well above that new target, suggesting limited upside. The bank believes the stock price already reflects best-case scenarios for tariff mitigation and new product launches, leaving little room for positive surprises.

The broker's earnings estimates sit below consensus, driven by assumptions of more gradual product ramps and competitive risks. UBS noted that investors' expectations are already ahead of sell-side forecasts, skewing earnings risk to the downside. Their DCF analysis indicates the current share price implies an operating margin over 18.5% by 2030, compared to their 16.7% estimate.

GE HealthCare shares have nearly fully recovered from April 2025 lows, gaining about 45% versus 11% for Siemens Healthineers and 33% for Philips. The bank forecasts a dividend yield of 0.2% and expects the stock to fall about 9%, while the market could return 8.5%. UBS views the risk-reward as unfavorable despite the higher price target.