Jim Cramer reacts as GE Healthcare upsizes secondary offering

GE Healthcare Technologies Inc (NASDAQ: GEHC) is in the red today after General Electric Co (NYSE: GE) said it will trim its stake further in the medtech company.

Cramer’s view on GE Healthcare’s secondary offering

General Electric will exchange shares of GE Healthcare for debt that, as per Jim Cramer, removes an overhang from the Nasdaq-listed firm.

$GEHC upsized its recently announced secondary offering today to 14 million shares. GE Healthcare had climbed the last time General Electric unloaded its shares in February.

Last month, the $40 billion company based out of Chicago, Illinois also reported market-beating financial results for its fiscal fourth quarter. Its guidance, however, came in a bit weaker than expected.

GE Healthcare stock is currently up close to 40% versus its low in late October of 2023.

Is GE Healthcare stock worth buying?

The Mad Money host is bullish on GE Healthcare Technologies Inc as it may continue to benefit from higher hospital volumes moving forward.

Cramer also expects $GEHC to gain on the back of strong demand for AI enabled imaging equipment. Note that the Charitable Trust does have a position in GE Healthcare.

His view is in line with Sezgi Oezener – an HSBC analyst who recently assumed coverage of GE Healthcare stock with a “buy” rating. His $100 price target suggests close to a 15% upside from here. Ozener’s told clients in a research note last month: