2013 is considered a landmark year for Haemonetics (HAE) based on several key growth factors, including entry in the $1.2 billion whole blood collection market with the acquisition of the transfusion medicine business of Pall Corp. We are also optimistic about the expected limited market release of the paperless phlebotomy offering by the end of the fiscal fourth quarter.
We believe deeper penetration of IMPACT accounts and the growth in the Plasma business should drive sales going forward. Haemonetics focus on emerging markets is yielding results and China continues to record strong growth. Revenue from this region is expected to accelerate over the forthcoming period.
We thus upgrade the stock to Outperform. Our target price is based on 29.6x our 2013 EPS estimate of $1.69.