HAE: Broad Outperformance And Achievable Hospital Guidance Will Support Gradual Share Recovery

Analysts have modestly raised their price target on Haemonetics to approximately $86 from about $85, citing broad-based outperformance, more achievable Hospital guidance, and an upgraded FY26 sales outlook that supports a gradual recovery in the shares.

Analyst Commentary

Bullish Takeaways

• Bullish analysts highlight that the price target increase toward the high $80s reflects growing confidence in the company’s ability to sustain outperformance across all operating segments.
• Execution in the most recent quarter, particularly beating expectations in each business line, is viewed as a sign that management can reliably deliver on its financial and operational commitments.
• The reset of Hospital guidance to what is seen as a more achievable level reduces execution risk, which supports a higher valuation multiple and improves visibility into medium term growth.
• The raised FY26 total sales outlook underpins a narrative of durable top line expansion, reinforcing expectations for a gradual rerating in the shares as credibility on guidance improves.

Bearish Takeaways

• Bearish analysts caution that the recent outperformance may be at least partly reflected in the current share price, limiting near term upside despite the higher target.
• There is lingering concern that any stumble in executing the revised Hospital plan could quickly erode the renewed confidence that is now embedded in forward estimates and valuation.
• Some remain wary that the upgraded FY26 sales outlook raises the bar for future quarters, increasing the risk of disappointment if macro or industry conditions soften.
• Questions persist around the sustainability of growth across all segments, and skeptics argue that the gradual recovery in the stock could stall if margin expansion does not keep pace with revenue gains.

What's in the News

• Completed a share repurchase of 1,430,579 shares, representing 2.97% of outstanding shares, for a total of $75 million under the buyback announced on May 8, 2025 (Key Developments).
• Buyback activity was executed between June 29, 2025 and September 27, 2025, signaling continued capital return to shareholders and confidence in the company’s valuation (Key Developments).

Valuation Changes

• The fair value estimate has risen slightly to about $85.9 from roughly $84.5, reflecting modestly higher long term expectations.
• The discount rate has fallen slightly to approximately 8.39% from about 8.46%, indicating a marginally lower perceived risk profile in the valuation model.
• Revenue growth has remained effectively unchanged at around 4.5% annually, signaling stable assumptions for top line expansion.
• The net profit margin assumption is essentially flat at roughly 17.6%, suggesting no material change to long term profitability expectations.
• The future P/E multiple has risen slightly to about 15.2x from roughly 15.0x, implying a modestly higher valuation placed on projected earnings.