Mizuho lowers Haemonetics stock price target to $70 on VASCADE MVP slowdown

Investing.com - Mizuho lowered its price target on Haemonetics (NYSE:HAE) to $70.00 from $90.00 on Thursday, while maintaining an Outperform rating on the stock. According to InvestingPro analysis, the company appears undervalued at current levels, with a healthy financial score of 2.86 out of 5, indicating GOOD overall health.

The price target reduction follows Haemonetics’ fiscal first-quarter results, which showed a $20 million revenue beat and earnings that exceeded expectations by $0.09 per share. The company’s strong performance was driven by outperformance in its Plasma segment, which beat Street estimates by $20 million, and its Blood Center division, which exceeded expectations by $5 million. The company maintains solid fundamentals with trailing twelve-month revenue of $1.35 billion and projected earnings per share of $4.90 for fiscal 2026. Get deeper insights into HAE’s financials with a comprehensive Pro Research Report, available exclusively on InvestingPro.

Despite the overall strong quarterly results, Haemonetics shares fell 26% on Thursday, significantly underperforming the S&P 500’s 0.6% decline. The sharp sell-off was primarily attributed to a slowdown in the company’s VASCADE MVP product line, which decelerated to 6% growth from 28% growth in the previous quarter.

Mizuho identified both internal and external factors contributing to the VASCADE MVP slowdown. The firm noted that prior division leadership had focused more on new account openings rather than maximizing existing accounts. Additionally, competitive pressures from two private companies that distributed free samples further impacted U.S. sales.

With a recovery in the VASCADE MVP product line expected to take at least six months, Mizuho has reduced its Hospital segment forecast by 10% compared to its previous model, resulting in the lower price target.

In other recent news, Haemonetics Corporation reported its first-quarter fiscal year 2026 results, exceeding both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $1.10, surpassing the anticipated $1.01, and reported revenue of $321 million, outperforming the forecasted $302.62 million. Despite these strong financial results, concerns over future growth prospects led to a decline in the company’s stock. Raymond James downgraded Haemonetics from Strong Buy to Outperform, citing a slowdown in the interventional technologies segment. Similarly, JPMorgan downgraded the stock from Overweight to Neutral due to mixed performance, although plasma revenue showed significant growth. Needham, while maintaining a Buy rating, lowered its price target to $68.00, acknowledging increased competition. These developments highlight the mixed sentiment among analysts despite the company’s robust earnings performance.

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