Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Raymond (NSE:RYMD) James downgraded Haemonetics (NYSE:HAE) from Strong Buy to Outperform and lowered its price target to $78.00 from $105.00 following the company’s latest quarterly results. The stock, currently trading at $53.99, is showing signs of being undervalued according to InvestingPro analysis, which gives the company a GOOD overall financial health score.
The downgrade comes after Haemonetics reported strong performance in its plasma and blood management segments, but experienced an unexpected decline in its interventional technologies franchise. The stock fell 29% following the earnings report, pushing it near its 52-week low of $53.25. InvestingPro data shows multiple indicators suggesting the stock may be oversold, with 12 exclusive ProTips available for subscribers.
Raymond James cited a slowdown in the vascular closure business, particularly in the EP market, which grew only 6% year-over-year compared to 28% growth in the previous quarter. The issues appear to be related to selling execution rather than increased competition.
Despite the downgrade, Raymond James maintains that Haemonetics remains an attractive and undervalued asset. The firm projects the company will return to at least mid-single digit organic growth with expanding margins.
The $78 price target is based on a 15x price-to-earnings multiple, which Raymond James considers appropriate given the increased uncertainty and potential near-term volatility in the business.
In other recent news, Haemonetics Corporation reported its first-quarter fiscal year 2026 results, exceeding both earnings and revenue projections. The company posted an earnings per share (EPS) of $1.10, surpassing the expected $1.01, and generated $321 million in revenue, outperforming the anticipated $302.62 million. Despite these strong results, JPMorgan downgraded Haemonetics from Overweight to Neutral, citing mixed performance and reducing its price target to $62.00. The downgrade was influenced by a one-time software contract renegotiation that contributed to a 29% organic growth in Plasma revenue, excluding CSL (OTC:CSLLY). Meanwhile, Needham lowered its price target for Haemonetics to $68.00 from $84.00 but maintained a Buy rating, acknowledging the competition while noting the company’s performance above consensus estimates. Haemonetics’ management chose to maintain its prior guidance despite the fiscal first quarter’s positive outcomes. These developments reflect ongoing investor concerns about future growth prospects amidst market conditions.
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