Haemonetics stock rating cut by JPMorgan on mixed results

Investing.com - JPMorgan downgraded Haemonetics (NYSE:HAE) from Overweight to Neutral on Friday, slashing its price target to $62.00 from $85.00 following the company’s mixed performance. The stock has fallen over 25% in the past week, trading near its 52-week low of $55.30, according to InvestingPro data.

The medical technology company reported strong Plasma revenue, which grew 29% organically excluding CSL (OTC:CSLLY), exceeding expectations by approximately $19 million. This outperformance included a one-time software contract renegotiation that boosted results.

Despite the Plasma segment’s strength, Haemonetics faced challenges in its Hospital and Interventional Vascular Therapy (IVT) segments, which underperformed as the company’s MVP/MVP XL products experienced significant slowdown due to competitive and commercial pressures.

Without the one-time contract benefit, JPMorgan noted Haemonetics would likely have missed operating margin targets by approximately 200 basis points and fallen short on adjusted earnings per share, complicating what is already a significant second-half weighted financial outlook.

While JPMorgan acknowledged Haemonetics’ undemanding valuation at approximately 11-12 times calendar year 2026 estimated earnings per share, the firm expressed concern that the company still faces operational challenges as financial projections continue to trend lower despite maintained guidance. According to InvestingPro, which offers comprehensive analysis through its Pro Research Report, the stock appears significantly undervalued based on its proprietary Fair Value model, with 8 additional ProTips available to subscribers.

In other recent news, Haemonetics Corporation reported its first-quarter fiscal year 2026 results, surpassing expectations for both earnings and revenue. The company achieved an earnings per share (EPS) of $1.10, exceeding the anticipated $1.01 by 8.91%. Revenue reached $321 million, outperforming the forecasted $302.62 million by 6.2%. Despite these positive results, Needham has lowered its price target for Haemonetics to $68.00 from $84.00, though it maintained a Buy rating on the stock. This adjustment follows the company’s earnings announcement, with Needham citing increased competition as a factor. Haemonetics’ management has decided to maintain its prior guidance, even in light of the earnings beat. These recent developments reflect ongoing investor concerns about future growth prospects and market conditions.

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