Haemonetics Reaffirms Strategy at J.P. Morgan Conference, Emphasizing Hospital Growth and Plasma Transition Challenges

What happened

Haemonetics presented at the J.P. Morgan Healthcare Conference, where management likely reiterated their portfolio focus on Hospital and Plasma segments while pruning Blood Center. They highlighted Hospital segment strength from electrophysiology and PFA-driven procedure growth, consistent with secular tailwinds noted in filings. However, the presentation acknowledged the CSL Plasma transition as a near-term headwind, with no North America disposables sales expected in fiscal 2026, aligning with prior disclosures of revenue pressure. Capital allocation measures, such as the $500 million buyback authorization, were emphasized to cushion earnings through volatility, but this does not address underlying customer concentration risks. Overall, the conference appearance reinforced existing narratives without introducing significant new information or solutions to core challenges.

Implication

The Hospital segment's growth from procedure tailwinds is positive but may not fully mitigate the fiscal 2026 Plasma revenue step-down from the CSL transition. Management's focus on capital flexibility through buybacks and debt management provides short-term EPS cushion but doesn't resolve over-reliance on key customers or regulatory burdens. Near-term earnings visibility remains low due to Plasma uncertainties, likely keeping stock volatility elevated. Investors must monitor quarterly segment results, especially Plasma stabilization and Hospital execution, for signs of improvement. Long-term, a rerating depends on evidence of Plasma recovery and sustained Hospital momentum, as the current discounted valuation reflects these mixed prospects.

Thesis delta

The presentation does not shift the investment thesis, which remains Watch/Neutral. Management's commentary confirms the near-term Plasma headwinds and Hospital strengths outlined in the DeepValue report, with no new catalysts or risk mitigations introduced. Investors should maintain a cautious stance, focusing on execution against the CSL transition and segment performance for any future thesis adjustments.