RBC reiterates GE HealthCare stock rating on SOFIE acquisition

RBC Capital maintained its Outperform rating and $80.00 price target on GE HealthCare (GEHC) following the company's announcement of acquiring SOFIE Biosciences. Despite the stock trading at $65.05, down 21.5% year-to-date, InvestingPro analysis indicates the company is currently undervalued at $81.90. GE HealthCare's acquisition of SOFIE Biosciences, a contract manufacturing organization specializing in radiopharmaceutical end-markets, includes 15 U.S. manufacturing sites, 21 cyclotrons, a theranostics facility, and U.S. rights to FAPI-74, a Phase III pan-cancer PET radiotracer.

The transaction is anticipated to close during the first half of 2027 and is expected to positively impact revenue growth, adjusted EBIT margin, and adjusted EPS in the first year. The firm anticipates the acquired business to experience low-double-digit growth under GE HealthCare's mid-single-digit long-term growth plan of 4% to 6%.