Needham Sees Reasonable Forecasts For Haemonetics, With Some Tailwinds

Haemonetics Corporation's HAE analyst day later this month may include an update on its businesses, new products, margin outlook, and financial targets for FY24-FY26.
Haemonetics' non-exclusive agreement with CSL was extended through 2023, and management expects at least $88M of Plasma sales to CSL in FY23. However, sales to CSL should decline to zero during FY24 as CSL transitions to Terumo's plasma collection system, resulting in a headwind to revenue growth.
The analysts see Hemostasis Management and Vascular Closure Devices as the main hospital growth drivers.
The analysts wrote that blood center revenue has been an underperformer for the company and has been consistently declining since FY18.
Needham says that Haemonetics' Blood Center business will be a drag for the company as it is for profitability and cash flow rather than growth and reinvesting profits into its higher-growth businesses.
The management expects an FY23 organic Blood Center decline of 4-7%.
As per Needham, inflation may limit operating leverage in the next 6-12 months. It also expects Haemonetics to benefit from product mix as higher-margin products and outpace lower-margin products.
Price Action: HAE shares are down 0.16% at $62.29 during the market session on the last check Wednesday.

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