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Takeaways
- Stocks of the companies spun out from General Electric, the former industrial icon, were all in the red Friday, led down by medical device maker GE HealthCare. Investors were worried that they would suffer the consequences of Beijing’s retaliatory tariffs against President Donald Trump’s duties.
- GE HealthCare and GE Aerospace, as well as the energy firm GE Vernova have significant China operations.
- BTIG analysts wrote that GE HealthCare faces not just the impact of China's retaliatory tariffs but also a newly launched anti-dumping probe by Beijing.
Investors were worried that Beijing’s retaliatory tariffs would hurt the shares of companies spun off by the former industrial icon General Electric, including medical device maker GE HealthCare Technologies.
Shares of GE HealthCare and GE Aerospace, which have significant China operations and all have significant China operations, fell by 11%, 11% and 8% recently, respectively. Of the three, GE HealthCare shares were the hardest hit, reflecting not just the tariffs but also Beijing’s launch of an anti-dumping probe into medical CT tubes from the U.S. and India, BTIG analysts wrote Friday.
China comprised about 12% of GE HealthCare’s sales in fiscal year 2024, with around 70% of what it makes in China—including imaging and ultrasound equipment— sold in the country, according to BTIG analysts led by Ryan Zimmerman.
Analysts Maintain 'Buy' Rating on GE HealthCare
“From GEHC’s perspective, it could depend on whether CT tubes are imported into China or made in China. But it could also depend on whether Ministry [of Commerce in China] BTIG analysts continue to recommend buying the stock, despite their “buy” recommendation.
In February, GE HealthCare said it expected year-over-year organic revenue growth of 2% to 3% in 2025, partly reflecting a “measured view of market conditions in China.”
General Electric has had a long-standing presence in China dating back to 1906. The industrial giant’s three-way split into independent publicly traded firms was completed a year ago.
