Back to top

Analyst Blog

Haemonetics Back to Neutral

On Apr 11, we downgraded Haemonetics Corporation (HAE - Analyst Report) back to our Neutral recommendation. In spite of huge growth prospects including the company’s recent entry in the $1.2 billion whole blood collection market, the share price already reflects the positive events and we do not see any catalysts to drive further upside. Moreover, we are concerned with the uncertain economic scenario, which continues to pose challenges for this Zacks Rank #2 (Buy) stock.

Why back to Neutral?

Haemonetics reported a mixed third quarter with adjusted EPS of 50 cents, surpassing both the Zacks Consensus Estimate of 47 cents and the year-ago earnings of 43 cents. Although revenues increased 31% year over year at CER to $247.4 million, it failed to meet the Zacks Consensus Estimate of $252 million.

Even though margin improvement took place during the quarter, the uncertain economic scenario continues to pose a challenge for Haemonetics. Despite the economic challenges, the company continued to enhance its blood management solutions. Although the gradual recovery in the economy has resulted in an uptrend in IMPACT sales, any hurdle in the recovery process might hamper the growth prospects.

With the acquisition of the transfusion medicine business of Pall Corporation for $551 million, Haemonetics forayed into the $1.2 billion whole blood collection market. Moreover, the company’s focus on emerging markets is yielding results as China continues to register strong growth. Revenue from this region is expected to accelerate over the forthcoming period.

Other stocks worth a look

Apart from Haemonetics, other stocks in the MedTech sector that are currently performing well include Given Imaging , Medical Action Industries Inc. and Cyberonics Inc. (CYBX - Analyst Report). All these companies carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%