Baird initiates Haemonetics stock with outperform rating on market position

Published 25/06/2025, 23:10
Baird initiates Haemonetics stock with outperform rating on market position

Investing.com - Baird initiated coverage on Haemonetics (NYSE:HAE) Wednesday with an outperform rating and set a price target of $87.00. The company, currently trading at $73.40, has demonstrated strong financial health with a return on equity of 19% and maintains a healthy current ratio of 1.62.

The research firm cited Haemonetics’ position as the worldwide leader in the $800 million global plasma collection solutions market, noting the company is positioned to benefit from expansion in the plasma-derived therapeutics market. According to InvestingPro analysis, the company’s strong market position is reflected in its impressive 57.2% gross profit margin and overall "GREAT" financial health score.

Baird highlighted that Haemonetics has undergone a portfolio transformation beginning in 2016/2017, which has shifted growth avenues beyond legacy plasma and blood businesses toward higher-growth and higher-margin hospital-based segments, particularly VASCADE and Vascular Closure products.

The firm acknowledged near-term challenges for Haemonetics, including an anticipated plasma contract expiration that will likely drag organic growth to negative or low single digits in fiscal year 2026, alongside ongoing revamping of its Vascular Closure business.

Baird projects normalized high single-digit to low double-digit revenue and EPS growth for Haemonetics in the longer term, which supports approximately 1.5 times multiple expansion underlying the $87 price target.

In other recent news, Haemonetics Corporation reported its fourth-quarter fiscal year 2025 earnings, surpassing analysts’ expectations with an adjusted EPS of $1.24 compared to the forecast of $1.22. The company’s revenue slightly exceeded projections at $331 million, driven by growth in the hospital and interventional technologies segments. Haemonetics also executed a $150 million share buyback program, reflecting strong cash flow and financial health. JMP Securities maintained a Market Outperform rating with a $100 price target, highlighting Haemonetics’ consistent performance and optimistic guidance for fiscal year 2026. The company anticipates increased market share in the Plasma segment and higher utilization in the Hospital segment, supported by effective cost-control measures. Haemonetics forecasts a decline in fiscal 2026 revenue by 3% to 6% on a reported basis, with organic growth excluding CSL (OTC:CSLLY) expected between 6% and 9%. The company projects an improvement in its adjusted operating margin to 26-27% and adjusted EPS between $4.70 and $5.00. Haemonetics’ strategic initiatives and restructuring efforts are expected to support its growth trajectory and financial targets in the coming quarters.

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