Haemonetics (HAE) Valuation Check After Needham Downgrade on Rising Vascular Closure Competition

Haemonetics (HAE) just took a hit after Needham cut the stock to Hold, citing rising competition from Abbott and Cordis in vascular closure devices and raising questions about how durable that Interventional Technologies growth story really is.

See our latest analysis for Haemonetics.

The downgrade comes after a strong run, with a roughly 56% 3 month share price return followed by a 1 week pullback. However, the 5 year total shareholder return remains deeply negative and suggests longer term momentum is still rebuilding.

If this kind of sentiment shift has you reassessing healthcare exposure, it might be a good moment to explore other opportunities across healthcare stocks.

Yet with the stock still trading at a discount to analyst targets and intrinsic value estimates, investors have to decide whether Haemonetics is quietly undervalued or whether today’s price already reflects all the future growth.

Most Popular Narrative Narrative: 6.9% Undervalued

With Haemonetics last close at $79.98 versus a most popular narrative fair value of about $85.91, the story leans toward a modest upside and raises the question of what is driving that gap.

Enterprise-wide portfolio transformation, highlighted by the divestiture of low-margin businesses, disciplined capital deployment, and ongoing investment in automation and digital solutions, is driving substantial gross and operating margin expansion (guidance of 26–27% for FY26) and is likely to support further improvements in net margins and free cash flow conversion.

Read the complete narrative.

Want to see what kind of future profit engine justifies that higher fair value? The narrative quietly bakes in rising margins, steady top line expansion, and a valuation multiple that still sits below many sector heavyweights. Curious how those moving parts combine into a higher price tag without depending on explosive growth?

Result: Fair Value of $85.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained pressure in vascular closure and continued dependence on a few US driven products could quickly undermine the margin and growth assumptions in this narrative.

Find out about the key risks to this Haemonetics narrative.

Build Your Own Haemonetics Narrative

If you see the story differently or want to stress test the assumptions with your own work, you can build a tailored view in just minutes, Do it your way.

A great starting point for your Haemonetics research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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