Haemonetics (HAE) Stock Forecast & Price Target

Haemonetics Corp is projected to achieve a 24% operating margin in FY25, highlighting a consistent upward trend from the previous year, alongside notable improvements in gross and operating margins, which increased by 240 basis points and 390 basis points year-over-year, respectively. The company's plasma segment has experienced revenue growth driven by premium pricing from technology upgrades and expansions in customer collections, while the hospital segment has benefitted from double-digit growth in transfusion management and strong performance in its vascular closure business. Potential catalysts for further positive performance include faster-than-expected growth in plasma collection volumes, additional margin improvements, and accretive acquisitions, positioning Haemonetics favorably in the healthcare market.

Haemonetics Corp is experiencing a downturn in their core segments, with organic sales in the Blood Center segment declining by 2.8% to $68.5 million and a notable drop of 9.1% in Plasma sales to $138.6 million, both underperforming consensus expectations. The company has revised its guidance for FY25, anticipating a reduction in organic growth rates for both the Hospital segment to 12-14% and the Blood Center segment to a contraction of 5-7%, indicating potential challenges in maintaining growth momentum. Overall, Haemonetics' organic revenue growth has slowed to -0.3%, compounded by expectations of deteriorating operating margins and below-consensus earnings for the fiscal year.