I am bullish on Haemonetics Corporation (NYSE:), as its attractive stock price and recovering business profile look promising.

Haemonetics offers plasma and blood supply and related services.

The company was founded by Dr. Allen Latham in 1970. Since then, it has grown to more than 16 countries. (See HAE stock charts on TipRanks)

Strengths

Haemonetics offers innovative solutions for hematology through its core business segments: Plasma, Blood Center, and Hospital.

The company’s main value is due to its position as the leading developer of blood plasma collection devices. Haemonetics holds 75% market share, which it acquired through several strategic acquisitions.

Cardiva, the FDA-approved closure device used in electrophysiology procedures, was acquired by Haemonetics this year.

Recent Results

Haemonetics Corp reported an adjusted EPS of $0.50 for the first quarter of 2022, showing 8.7% growth year-over-year, surpassing the 6.4% growth consensus estimate. It announced revenue of $228.5 million – an increase of 16.8% year-over-year – which was due to recovery across all businesses, particularly hospitals and rollouts of Plasma Persona.

Haemonetics’ Plasma category reported revenue of $71.8 million, indicating an increase of 5.3% year-over-year (up 6.2% on an organic basis). Blood Center revenues were $72.9 million. This was a 6.2% decrease (down 5.9% organically).

Hospital revenue soared to $78.5million, an astonishing growth rate of 75.1%. It was due to improvements in hospital procedures, which led to higher disposable equipment use, stronger capital sales in North America, and new opportunities in Europe.

Haemonetics’ quarterly results revealed a brighter picture than was expected. Due to recovery in several business segments and a rising trend in Hemostasis Management, the company saw an increase year over year in revenue.

The company also reported a high demand for personal tech, as well as its full-year guidance in 2022, which is encouraging.

Haemonetics reported that the COVID-19 pandemic had caused a slowdown in Blood Center operations. Investors remain concerned by the stiff competition and economic uncertainty.

Valuation Metrics

Haemonetics stock looks fairly valued at the moment. The stock’s EV/EBITDA is 15.4x and the price to normalized earnings is 22.5x. Neither of these are particularly appealing nor expensive.

Wall Street’s Take

From Wall Street analysts, Haemonetics earns a Strong Buy analyst consensus, based on five unanimous Buy ratings in the past three months. The upside potential is 10.8%, according to the HAE average price target of $77.80.

Summary and Conclusions

Haemonetics stock looks reasonably attractive at the moment, as Wall Street analysts are unanimously bullish on it.

The business’ revenue growth is outpacing analyst estimates. The stock price is not too expensive for a company that has strong growth momentum.

Investors may be able to limit their stock exposure by limiting their exposure.

Disclosure: Samuel Smith held no positions in the companies mentioned in this article at the publication date.

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