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Why Haemonetics Stock Rallied on Friday

By Eric Volkman - May 14, 2021 at 5:56PM

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One analyst upgrade in particular seemed to bring back the bulls.

What happened

A day after its stock took a 13% bath following the release of fourth-quarter results, Haemonetics (HAE 0.46%) bounced back on Friday. Several analysts tweaked their outlooks on the company, and it closed the day more than 8% higher.

So what

Friday saw five financial services companies tracking Haemonetics stock adjust their views. The analysts at four of those five -- Morgan Stanley, JMP Securities, Needham & Company, Jefferies, and CJS Securities -- all lowered their price targets. Crucially, however, they maintained their recommendations, which were almost all buys or the equivalent thereof (Morgan Stanley maintained at equalweight).

A doctor conferring with one elder and one young man in a healthcare facility.

Image source: Getty Images.

In its earnings release, Haemonetics attributed its revenue and earnings declines to the coronavirus pandemic (many would-be patients postponed certain procedures for fear of being exposed to the virus in a healthcare facility).

Now that the outbreak is receding, the company is optimistic about the future; it proffered guidance indicating that full-year fiscal 2022 revenue will grow by at least 8%, with earnings rising by a minimum of nearly 11%.

Now what

It was the fifth of those adjusted analyses, that from CJS' Larry Solow, which seems to be resonating with Haemonetics-watchers. Surely with an eye on that encouraging company guidance, Solow upped his recommendation from market perform to market outperform.

This feels realistic and achievable. Many of those folks who postponed procedures last year are likely to return soon to the doctor's office or hospital, and Haemonetics' blood and plasma collection systems services should get a boost.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Haemonetics Corporation Stock Quote
Haemonetics Corporation
$76.23 (0.46%) $0.35
Morgan Stanley Stock Quote
Morgan Stanley
$91.83 (-0.21%) $0.19
Jefferies Financial Group Inc. Stock Quote
Jefferies Financial Group Inc.
$35.06 (0.16%) $0.06

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