Update (9:37 a.m.): Updated with Wednesday market open information.
NEW YORK ( TheStreet) -- Jefferies increased its price target on Haemonetics (HAE) - Get Report to $38 and set a "buy" rating. The firm noted the company's base business is set for a rebound and longer-term plans for high-single digit revenue growth are in place.
The stock was up 0.75% to $33.67 at 9:36 a.m. on Wednesday.
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Separately, TheStreet Ratings team rates HAEMONETICS CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HAEMONETICS CORP (HAE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 86.88% to $51.47 million when compared to the same quarter last year. In addition, HAEMONETICS CORP has also vastly surpassed the industry average cash flow growth rate of 5.14%.
- Despite currently having a low debt-to-equity ratio of 0.52, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that HAE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.64 is high and demonstrates strong liquidity.
- 48.79% is the gross profit margin for HAEMONETICS CORP which we consider to be strong. Regardless of HAE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.22% trails the industry average.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, HAE has underperformed the S&P 500 Index, declining 16.07% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HAEMONETICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: HAE Ratings Report
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.