Haemonetics Leveraging Strong Recovery Trends And Repositioning For The Future

Companies facing markets in long-term decline have a few choices – pretend it’s not happening, consign themselves to riding it as long as they can, or harvest what they can and build toward a future based on new markets. It’s debatable as to whether plasma collection is a market truly in long-term decline, but with the growing investment in oligonucleotide therapies, gene therapies, and cell therapies targeting ailments treated with plasma-derived therapies, I believe Haemonetics (NYSE:HAE) is making the right strategic choice by reinvesting in growth opportunities like vascular closure within its Hospital business.

Haemonetics is likely looking at strong plasma center demand for many more years, and I find the margin improvement plans to be credible. At the same time, management will be directing free cash flow into supporting organic growth opportunities and pursuing diversification and new growth through M&A. Haemonetics shares have been strong over the past year, but if double-digit growth over the next five years and longer-term growth in the high single-digits is attainable, the shares aren’t yet overvalued.

 

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Haemonetics Leveraging Strong Recovery Trends And Repositioning For The Future