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Haemonetics Grows on Strong Plasma, Hemostasis Management

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On Sep 26, we issued an updated research report on Haemonetics Corporation (HAE - Free Report) . The company has been witnessing strong growth in Plasma and Hemostasis Management units for quite some time now. The stock currently carries a Zacks Rank #2 (Buy).

Shares of this leading provider of hematology products and solutions have outperformed its industry over the past three months. The stock has climbed 10.1% compared with the industry's 4% rise.

Haemonetics is currently delivering a robust top-line performance with its Plasma as well as Hemostasis Management franchise. Per the company, benefits from complexity reduction, investments along with strength in market demand and success from early launches helped the company pull off an impressive performance. Continued momentum in new business generation and geographical expansion contributed to the results. The U.S launch of TEG 6s has also driven the share price. This ongoing positive trend has encouraged the company to project sturdy organic revenue growth for fiscal 2020.

Haemonetics has been witnessing a firm uptick in Plasma franchise for a while now. In the first quarter of fiscal 2020, Plasma revenue increased 16% on a 17% growth in North America, fuelled by price, volume and mix. The company has completed more than 5 million YES procedures.

The company is progressing well with the development and launch of NexSys PCS plasmapheresis system. To date, Haemonetics converted roughly 20% of its North American install fleet to the NexSys PCS device.

Under Hospital business, Hemostasis Management progressed in the last few quarters. Also, TEG emerged as the global leader in Hemostasis Management, led by solid disposable growth and amplified TEG success capital sales.

However, we are disappointed with the fact that despite spurring satisfactory growth at the Plasma and Hospitals segments, Haemonetics' sluggish Blood Center business tempered overall growth in the reporting cycle.

Other Key Picks

A few other top-ranked stocks in the broader medical space are Valeritas Holdings (VLRX - Free Report) , Baxter (BAX - Free Report) and Amedisys (AMED - Free Report) , each carrying the same solid Zacks Rank as Haemonetics.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Valeritas has a projected third-quarter 2019 earnings growth rate of 43.8%.

Baxter’s long-term earnings growth rate is projected at 12.8%.

Amedisys’ long-term earnings growth rate is expected to be 16.26%.

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