Goldman Takes Haemonetics Off Sell List, Upgrades To Neutral

Goldman Sachs has upgraded Haemonetics Corporation (NYSE: HAE) to Neutral and removed the stock from "Americas Sell List," saying that "consensus numbers and management expectations appear rebased with risk/reward in the stock more balanced."

The healthcare company recently issued its fiscal 2017 forecast that calls for adjusted earnings of $1.40–$1.50 per share (the Street: $1.42) on revenue of $850 million — $875 million (the Street: $888.52 million), 4–7 percent below prior year revenue. For the fourth quarter ended in March, the company's earnings and sales lagged consensus estimates.

"While we do not see a case to be more bullish on the stock, we no longer see a justification for an outright bearish view either," analyst David Roman wrote in a note.

Looking ahead, the analyst said abating headwinds in blood management and new product launches could boost top-line growth. For FY17, the analyst sees EPS of $1.51, above the company's guidance range.

Roman, who also raised his price target to $29 from $25, said, "To become more constructive, we would look for evidence of top-line upside drivers, greater realization of cost savings efforts, and/or balance sheet utilization."

At the time of writing, shares of Haemonetics rose 2.87 percent to $26.89.