Morgan Keegan Raises PT On HAE To $76

Morgan Keegan, citing 4Q results, is raising its price target on Haemonetics Corp. HAE from $73 to $76 and maintains a n Outperform rating on the stock. Says Morgan Keegan, in its report, “Haemonetics reported fiscal 4Q results that missed top-line expectations, but were 2% better than the Street EPS consensus. Importantly, management is now forecasting base business growth in fiscal 2012 (from 0% in fiscal 2011), which should drive roughly 70 bps operating leverage, despite investment spending. Management also clearly sent a signal that its balance sheet will be used for acquisitions and share repurchase in fiscal 2012. Although fiscal 2012 EPS guidance was lower than our forecast, we believe that the lowering of guidance now sets the company up to comfortably meet or exceed the expectations.” HAE closed yesterday at$68.86.