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Haemonetics: Strong Margin Performance Justifies Buy Rating Despite Revenue Challenges

Haemonetics: Strong Margin Performance Justifies Buy Rating Despite Revenue Challenges

Michael Matson, an analyst from Needham, maintained the Buy rating on Haemonetics (HAEResearch Report). The associated price target was lowered to $108.00.

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Michael Matson has given his Buy rating due to a combination of factors that highlight Haemonetics’s strong margin performance despite weaker revenue figures. Although the company’s third-quarter revenue did not meet expectations and its sales guidance for fiscal year 2025 was lowered, its earnings per share exceeded consensus estimates, showcasing resilience in profitability.
Haemonetics demonstrated a notable improvement in gross and operating margins, with year-over-year increases of 240 and 390 basis points, respectively. The company’s commitment to achieving a high-20% operating margin by fiscal year 2026 further reinforces confidence in its long-term growth potential. Despite the decline in plasma and hospital sales growth, the robust margin performance underpins Matson’s optimistic outlook, justifying the Buy rating while adjusting the price target to $108 from $112.

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