Goldman Sachs has upgraded Haemonetics Corporation HAE to Neutral and removed the stock from Americas Sell List, saying that "consensus numbers and management expectations appear rebased with risk/reward in the stock more balanced."
The healthcare company recently issued its fiscal 2017 forecast that calls for adjusted earnings of $1.40-$1.50 per share (Street: $1.42) on revenue of $850 million - $875 million (Street: $888.52 million), 4-7 percent below prior year revenue. For the fourth quarter ended in March, the company's earnings and sales lagged consensus estimates.
"While we do not see a case to be more bullish on the stock, we no longer see a justification for an outright bearish view either," analyst David Roman wrote in a note.
Looking ahead, the analyst said abating headwinds in blood management and new product launches could boost top-line growth. For FY17, the analyst sees EPS of $1.51, above the company's guidance range.
Roman, who also raised his price target to $29 from $25, said: "To become more constructive, we would look for evidence of top-line upside drivers, greater realization of cost savings efforts, and/or balance sheet utilization."
At the time of writing, shares of Haemonetics rose 2.87 percent to $26.89.
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