On Friday, Evercore ISI indicated a positive outlook for several companies in the hospital and teaching equipment sectors, following China's stimulus measures. The firm believes that the easing of an anticorruption campaign by the Chinese government could benefit General Electric (NYSE:GE) Healthcare (GEHC), given its significant revenue exposure to China, which stands at approximately 14%. The policy shift is seen as a potential end to the campaign that previously affected imaging equipment players.
The stimulus notice also highlighted surgical robotics, a segment where Intuitive Surgical (NASDAQ:ISRG) is expected to benefit. ISRG, with around 5% of its procedures conducted in China, could gain from the government's quota for 559 robotic systems established last year. Despite competition from local firms, ISRG is anticipated to secure a substantial portion of the market.
Additionally, the focus on high-end teaching equipment is considered favorable for life science instrument companies such as Thermo Fisher Scientific (NYSE:TMO), Waters Corporation (NYSE:WAT), Illumina (NASDAQ:ILMN), Bruker Corporation (NASDAQ:BRKR), and Danaher Corporation (NYSE:DHR).
While the specific equipment categories have not been detailed, Evercore ISI suggests that areas like high-end mass spectrometry, nuclear magnetic resonance, liquid chromatography-mass spectrometry, and next-generation sequencing could see benefits from the Chinese government's initiative.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.