BofA Securities has initiated coverage on Haemonetics (NYSE: NYSE:HAE), a company specializing in plasma collection and vascular closure devices, with a Neutral rating and a price target set at $85.00.
The firm's analysis suggests a potential 15% upside from the current stock price, acknowledging the strong market growth trends that are expected to benefit the medical device maker.
The firm notes that Haemonetics is poised to improve its margins due to favorable market conditions. However, there is a cautionary perspective regarding the margin expectations set by the Street for the remainder of fiscal year 2025 and into 2026, which are deemed likely too optimistic.
Despite the current attractive valuation of Haemonetics when compared to its industry peers, BofA Securities points out that the company will need to demonstrate margin outperformance in the forthcoming quarters in order to justify a re-rating of its stock. The firm's stance reflects a balanced view of the company's financial prospects against market expectations.
In other recent news, Haemonetics Corporation reported a 10% organic revenue increase in Q4 and a 12% rise for the fiscal year, with growth anticipated across its core plasma and hospital business units. In a financial move, Haemonetics upsized its private offering to $600 million in convertible senior notes, exceeding the initially proposed $525 million.
The company made strides in product development, gaining CE Mark certification for its SavvyWire® Pre-Shaped Pressure Guidewire (NYSE:GWRE) and launching the VASCADE MVP XL venous closure system. BTIG initiated coverage on Haemonetics with a Buy rating, highlighting the company's significant presence in the plasma market and substantial growth potential in the Hospital segment.
Needham upgraded Haemonetics' stock from Hold to Buy, based on the company's projected ability to achieve a high operating margin target for fiscal year 2026. Christopher Simon, the current President and CEO of Haemonetics, was appointed as a new independent director to the Board of Directors of Sotera Health Company.
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