Ariel Mid Cap Value Composite on Haemonetics Corporation
Thesis
Ariel expects Haemonetics to sustain growth on the back of its strengthening plasma franchise. Results and full-year guidance exceeded expectations as plasma growth accelerated, vascular closure trends improved and margins expanded. Strong cash generation reinforces the company's ability to fund the business. A new supply agreement with CSL Plasma could materially increase both revenue and earnings over time.
“momentum in the plasma franchise support Haemonetics' long-term growth outlook.”
Key risks
- Revenue uplift from the CSL Plasma agreement depends on successful execution
- Recovery in the vascular closure business may be uneven
- Sustaining the recent pace of plasma growth and margin expansion