Haemonetics (HAE) PT Lowered to $85 at Jefferies After Another Big Bath Quarter

May 14, 2021 9:23 AM EDT
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Price: $63.38 --0%

Rating Summary:
    7 Buy, 9 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 9 | Down: 7 | New: 48
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Jefferies analyst Anthony Petrone lowered the price target on Haemonetics (NYSE: HAE) to $85.00 (from $105.00) after the company reported the big bath quarter...again. This resulted in EPS estimates being cut to $2.35 from $2.60 in 2021 and $2.66 from $3.25 in 2022.

That said, the analyst noted several big shifts coming out of the quarter: 1) confirmation that a wide-scale NexLynk/NexSys upgrade cycle is underway, 2) Persona is high with conversions probable, 3) ~50% of restructuring savings will be reinvested, and 4) Cardiva opex will be in the $60-$65mn range out of gate.

The analyst reiterated a Buy rating, stating "Fully baked, our revised bridge suggests that key contracts can still generate up to $3.80 in adj EPS under reasonable terms which in turn supports our total co revised outlook for $4.75-$5.00 in the F2024-F2025 window. Using the current discount 22-24x forward framework discounted 2-years at 12% supports our revised $85 PT (prior $105)."

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