Strong Buy: Haemonetics Corporation Set for Growth and Margin Expansion

David Turkaly, an analyst from JMP Securities, reiterated the Buy rating on Haemonetics (HAE – Research Report). The associated price target is $125.00.

David Turkaly has given his Buy rating due to a combination of factors that indicate a positive outlook for Haemonetics Corporation. The company has recently concluded an impressive fiscal year and issued guidance for the following year that suggests substantial growth and profitability. Turkaly’s optimism is particularly drawn from Haemonetics’s forecast for margin expansion, with expectations of operating margins (OM) increasing from the current 20-21% to 23-24%. This projection aligns with a broader strategic plan aiming to enhance margins even further by fiscal year 2026.

Furthermore, Turkaly’s confidence is bolstered by the company’s performance in its latest quarter, which surpassed consensus estimates on both revenue and earnings per share. This success is anticipated to continue, supported by a robust hospital expansion strategy and operational excellence initiatives that are expected to yield increased volume leverage and cost efficiencies. Additionally, Haemonetics’s innovation in plasma collection technology, which is set to enhance donor yield and reduce collection times significantly, positions the company as a leader in its field. The revised price target of $125 reflects these potentials, applying a stable price-to-earnings multiple to the upgraded earnings estimate for the calendar year 2025.

According to TipRanks, Turkaly is an analyst with an average return of -4.2% and a 38.82% success rate. Turkaly covers the Healthcare sector, focusing on stocks such as OrthoPediatrics, Paragon 28, and Integra Lifesciences.

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Haemonetics (HAE) Company Description:

Haemonetics Corp. engages in the development and distribution of hematology products and solutions. It operates through the following geographical segments: Japan, EMEA (Europe, the Middle East, and Africa), North America Plasma, and All Other. Its products include surgical and diagnostic devices, blood and plasma center devices, blood center software, hospital software, and plasma center software. The company was founded by Allen Latham, Jr. in 1971 and is headquartered in Braintree, MA.