On Wednesday, BofA Securities initiated coverage on Haemonetics (NYSE:HAE) stock, 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.
The price target of $85.00 reflects the firm's assessment of the stock's potential and is based on the current financial and market data. BofA Securities emphasizes the importance of Haemonetics' future performance, particularly in terms of margin expansion, as a key factor for the stock's potential revaluation.
Investors and market watchers will be looking closely at Haemonetics' financial results over the next few quarters to see if the company can exceed the margin performance that is currently anticipated by the market.
In other recent news, Haemonetics Corporation has 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. Lastly, the reelection of the board of directors and approval of executive compensation were among the key proposals approved at Haemonetics' annual meeting.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.