Haemonetics Poised for Growth with Strong Q4 Projections and Strategic Acquisitions

Haemonetics (HAE – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Petusky from Barrington maintained a Buy rating on the stock and has a $105.00 price target.

Michael Petusky’s rating is based on Haemonetics’ anticipated financial performance and strategic positioning within its operational sectors. The company is expected to report its fourth-quarter revenues with a solid growth projection of 7.4%, which while slightly below consensus estimates, indicates a potential for outperformance. The plasma business, a significant segment for Haemonetics, is expected to continue its recovery with a modest year-over-year growth. Encouragingly, the hospital segment, bolstered by recent acquisitions such as OpSens, is projected to show a robust increase in revenue due to strong sales in vascular closure and hemostasis management products.

Furthermore, Petusky anticipates improvements in profitability, with adjusted EPS for the quarter projected to be near consensus estimates and showing an improvement from the previous year’s figures. The forecast includes material operating leverage with reductions in R&D and SG&A expenses, contributing to a healthier margin profile. Looking ahead to FY/25, despite the tapering of the CSL business, there is optimism around Haemonetics’ ability to drive margin expansion and scale the hospital business significantly. With a price target of $105 based on a multiple of FY/25 adjusted EBITDA, the Outperform rating is maintained, reflecting confidence in the company’s ability to navigate its challenges and capitalize on its growth drivers.

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Haemonetics (HAE) Company Description:

Haemonetics Corp. engages in the development and distribution of hematology products and solutions. It operates through the following geographical segments: Japan, EMEA (Europe, the Middle East, and Africa), North America Plasma, and All Other. Its products include surgical and diagnostic devices, blood and plasma center devices, blood center software, hospital software, and plasma center software. The company was founded by Allen Latham, Jr. in 1971 and is headquartered in Braintree, MA.