Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 9 Jan, 26 | HAE | Buy | USD 84.04 | USD 88.5 | USD 93.0 | 6 days | Closed |
12.51%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Haemonetics Corporation, a healthcare company, provides suite of medical products and solutions in the United States and internationally. The company offers automated plasma collection systems, donor management software, and supporting software solutions including NexSys PCS and PCS2 plasmapheresis equipment and related disposables and intravenous solutions, as well as integrated information technology platforms for plasma customers to manage their donors, operations, and supply chain; and NexLynk DMS donor management system, and Donor360. It also provides automated blood component and manual whole blood collection systems, such as MCS brand apheresis equipment to collect specific blood components from the donor; disposable whole blood collection and component storage sets; SafeTrace Tx blood bank information system; and BloodTrack blood management software, a suite of blood management and bedside transfusion solutions that combines software with hardware components, as well as an extension of the hospital's blood bank information system. In addition, the company offers hospital products comprising TEG, ClotPro, and HAS hemostasis analyzer systems that provide a comprehensive assessment of a patient's overall hemostasis; and TEG Manager software, which connects various TEG analyzers throughout the hospital, providing clinicians remote access to active and historical test results that inform treatment decisions. Further, it provides Cell Saver Elite +, an autologous blood recovery system for cardiovascular, orthopedic, trauma, transplant, vascular, obstetrical, and gynecological surgeries; and VASCADE products comprising VASCADE and VASCADE MVP, a technology platform which offers catheter-based delivery system and leverages the natural clot including collagen. The company sells its products through direct sales force, independent distributors, and sales representatives. Haemonetics Corporation was founded in 1971 and is headquartered in Boston, Massachusetts.
Strong Free Cash Flow Generation: Haemonetics generated USD 88.7 million of free cash flow in Q2 FY26, a substantial increase from USD 37.0 million in Q2 FY25, representing a 139.6% year-over-year improvement
Sustained Growth in the Hospital Segment: The Hospital segment recorded revenues of USD 145.5 million in Q2 FY26, compared with USD 138.4 million in Q2 FY25
Sharp Decline in Blood Center Reported Revenues: The Blood Center segment reported revenues of USD 56.5 million in Q2 FY26, down from USD 68.5 million in Q2 FY25, representing a 17.6% year-over-year decrease
Overall Reported Revenue Decline: In Q2 FY26, total net revenues declined to USD 327.3 million from USD 345.5 million in Q2 FY25, representing a 5.3% year-over-year contraction
Haemonetics’ investment profile remains exposed to risks from continued revenue volatility linked to portfolio transitions and customer concentration in the Plasma segment, which could pressure near-term growth despite improving margins and cash flow generation
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 84.04 | 74.0 | 88.5 | 93.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Performance and Portfolio Transition Effects: During the second quarter of fiscal 2026, Haemonetics reported net revenues of USD 327.3 million, reflecting a 5.3% year-over-year decline compared with Q2 FY25. This contraction was primarily attributable to portfolio transitions, including the divestiture of the Whole Blood product line and the absence of transitional disposable sales to CSL Plasma. Notwithstanding these headwinds, organic revenue declined only 1.8%, while organic revenue excluding CSL grew robustly by 9.4%, underscoring resilient underlying demand across core franchises.
Segment-Level Operational Performance: Operationally, performance across segments was mixed. The Hospital segment delivered solid growth, with revenues increasing 5.1% year-over-year to USD 145.5 million, supported by strength in Blood Management Technologies. In contrast, Plasma revenues declined 9.5% to USD 125.4 million, reflecting the lapping of CSL-related sales, although organic growth excluding CSL reached a strong 18.6%. The Blood Center segment saw reported revenues fall 17.6% to USD 56.5 million, largely due to portfolio exits, while still posting 3.9% organic growth, indicating operational stability in retained offerings.
Margin Expansion and Cost Discipline: Despite lower reported revenues, Haemonetics achieved significant margin expansion. Gross margin improved to 59.5% in Q2 FY26 from 54.2% in Q2 FY25, driven by favorable product mix, pricing actions, plasma share gains, and reduced restructuring-related costs. This margin improvement highlights effective execution of pricing strategies and operational efficiencies amid a transitional revenue base.
Operating Income and Profitability Trends: Operating income rose to USD 58.5 million in Q2 FY26 from USD 51.7 million in Q2 FY25, translating into an operating margin expansion of 290 basis points to 17.9%. On an adjusted basis, operating margin increased 250 basis points to 26.7%, reflecting disciplined expense management, lower freight and integration costs, and targeted reinvestment in research and development to support future growth initiatives.
Earnings Growth and Tax Stability: Net income for the quarter increased to USD 38.7 million, compared with USD 33.8 million in Q2 FY25, while diluted earnings per share rose 22.9% year-over-year to USD 0.81. Adjusted earnings per share increased 13.4% to USD 1.27, supported by margin expansion and stable tax rates, with the effective tax rate remaining broadly flat at approximately 24.6%.
Cash Flow Generation and Capital Allocation: Haemonetics delivered exceptional cash flow performance in Q2 FY26. Cash flow from operating activities surged to USD 111.3 million, up 128% year-over-year, while free cash flow increased 139.6% to USD 88.7 million. This strong cash conversion was driven primarily by favorable working capital movements, particularly lower inventory levels. The company also returned capital to shareholders through the repurchase of USD 75 million of common stock during the quarter.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Haemonetics Corporation (NYSE: HAE) at the closing market price of USD 84.04, as on Jan 08, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Medical Instruments & Supplies
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HAE Haemonetics Corporation |
-1.24 1.89% | 64.54 | 35.49 | 21.05 | 3.62 | 5.02 | 3.95 | 18.76 |
| ISRG Intuitive Surgical Inc |
-17.88 3.60% | 478.85 | 73.05 | 61.73 | 19.15 | 10.25 | 18.41 | 59.92 |
| ESLOY Essilor International SA |
-0.9 0.59% | 151.33 | 35.39 | 24.81 | 3.63 | 2.20 | 4.00 | 16.25 |
| ESLOF EssilorLuxottica Société anonyme |
-2.0 0.66% | 301.00 | 35.71 | 25.13 | 3.62 | 2.23 | 4.00 | 16.25 |
| BDX Becton Dickinson and Company |
4.28 2.12% | 206.19 | 37.72 | 15.92 | 3.25 | 2.49 | 4.08 | 17.10 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 9, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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