BTIG has initiated coverage on Haemonetics Corporation (NYSE: NYSE:HAE), a company specializing in plasma collection technology and hospital care solutions, with a Buy rating and a price target of $112.
The firm highlights Haemonetics' significant presence in the plasma market and anticipates substantial growth in the Hospital segment by fiscal year 2025.
According to the firm, Haemonetics' Plasma Solutions, Blood Center, and Hospital Care Solutions are poised for growth, with the Hospital segment expected to grow approximately 30% year-over-year in FY2025, potentially becoming the largest contributor to the company's total sales.
The Plasma business is also expected to see an 8-12% year-over-year increase in FY2025, following robust growth in recent quarters.
The firm's analysis suggests that sales from both legacy and new products in the Hospital division are driving strong revenue growth, which in turn, is anticipated to enhance the company's gross margin and operating margin.
Haemonetics is recognized for its stable cash flow and solid balance sheet, presenting an attractive investment profile with high single-digit sales growth and accelerated earnings per share expansion.
In other recent news, Haemonetics Corporation made a 10% organic revenue increase in Q4 and a 12% rise for the fiscal year. The company also upsized its private offering to $600 million in convertible senior notes, exceeding the initially proposed $525 million.
In a noteworthy move, Haemonetics received CE Mark certification for its SavvyWire® Pre-Shaped Pressure Guidewire (NYSE:GWRE), enabling the company to introduce the product to the European Union and other regions recognizing the CE Mark. The company also launched the VASCADE MVP XL venous closure system, a new addition to its VASCADE portfolio, designed to enhance patient outcomes by offering an advanced solution for vascular closure.
Recent developments also include the reelection of the board of directors and approval of executive compensation at Haemonetics' annual meeting. Analyst firm Needham upgraded Haemonetics' stock from Hold to Buy, based on the company's projected ability to achieve a "high-20%" operating margin target for fiscal year 2026.
Lastly, Sotera Health Company appointed Christopher Simon, the current President and CEO of Haemonetics Corporation, as a new independent director to its Board of Directors.
InvestingPro Insights
According to the latest data from InvestingPro, Haemonetics Corporation (NYSE:HAE) is currently trading at a high earnings multiple with a P/E ratio of 32.09, indicating investor confidence in the company's future earnings potential. This is further supported by the company's solid financial performance over the last twelve months, with a revenue growth of 9.47% and an operating income margin of 16.43%. These figures underscore the firm's expectations of Haemonetics' growth, particularly in the Hospital segment, which is forecasted to see significant expansion by FY2025.
InvestingPro Tips suggest that despite the stock trading near its 52-week low, analysts predict the company will be profitable this year, which aligns with BTIG's positive outlook. Additionally, the company's cash flows can sufficiently cover interest payments, and its liquid assets exceed short-term obligations, reinforcing the firm's view of Haemonetics' stable cash flow and robust balance sheet.
For those looking to delve deeper into Haemonetics' financials and future prospects, additional InvestingPro Tips can be found at https://www.investing.com/pro/HAE, with a total of 9 tips available to guide investors' decisions.
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