Citigroup Maintains Neutral Outlook on Haemonetics with Target Price of $108.85

Citigroup has maintained a neutral outlook on Haemonetics Corporation, a global healthcare solutions provider. The bank has set a one-year target price of $108.85 for the stock, indicating a potential increase of 23.47%. This forecast follows the release of real-time metrics from InvestingPro, which report a market capitalization of $4.4 billion and a P/E ratio of 32.22 as the company progresses through its fiscal year.

Despite a projected annual revenue decline of 5.13%, expected to total $1.156 billion, Haemonetics has shown resilience with an 18.75% growth in revenue for the last twelve months ending in the first quarter of 2024. The company’s gross profit margin stands at 53.2%, while its non-GAAP earnings per share (EPS) is reported at 3.16, slightly above the Basic EPS from continuing operations of $2.70 for the same period.

Institutional ownership in Haemonetics has risen by 1.72%, with total holdings now at approximately 67.3 million shares. Significant institutional investors include Capital Research Global Investors, Neuberger Berman Group, and Wellington Management Group. This increase aligns with insights indicating that company management has actively engaged in share buybacks, reflecting a positive sentiment towards the stock.

Moreover, the number of investment funds owning shares in Haemonetics has grown by five, mirroring the overall bullish sentiment, as evidenced by a low put/call ratio of 0.21. The company is characterized by a moderate debt level and strong earnings quality, with free cash flow surpassing net income—elements that enhance investor confidence.

Haemonetics’ stock has also been noted for its low price volatility, with liquid assets exceeding short-term liabilities. Combined with the company’s profitability over the past year, these attributes suggest a stable financial outlook for Haemonetics Corporation.