HAE - Haemonetics Undervalued As It Passes Into A Period Of Softer Reported Growth
2024-06-21 15:50:11 ET
Summary
- Haemonetics faces near-term revenue growth challenges due to the loss of its plasma collections business with CSL over the next two years.
- Management has used M&A to boost its revenue growth, including the very successful deal for Cardiva to enter vascular closure, but recent M&A deals have been more questionable.
- Haemonetics should see revenue reacceleration in FY'26, with long-term revenue growth of 6% to 7% and margin improvement driving a fair value above $100.
Med-tech investors can be surprisingly preoccupied with revenue growth, and that's an issue for Haemonetics Corporation ( HAE ) over the near term. With the company about to lose its plasma collections business with CSL Limited ( OTCQX:CSLLY ) (a process that has been years in the making), revenue growth is likely to slow to the low single-digits in FY'25 ahead of what should be an acceleration thereafter on healthy underlying trends in its blood/plasma business, as well as ongoing growth in its medical device business....
Haemonetics Undervalued As It Passes Into A Period Of Softer Reported Growth