On January 10, we upgraded blood management solutions,
) to Outperform based on its huge growth prospects. Haemonetics,
which recently entered the 1.2 billion whole blood collection
market, became a Zacks Rank #1 (Strong Buy) stock, shortly after
its update on Key growth initiatives at J.P. Morgan Health Care
Conference on January 9.
Why the Upgrade?
Haemonetics Corporation has projected fiscal 2013 as a
landmark year based on several key growth factors including the
$551 million acquisition of transfusion medicine business of
(PLL), the largest acquisition in the company's history. The
acquisition has allowed Haemonetics to enter the whole blood
collection market, which is growing at a fast pace with nearly 60
million red blood cells collection procedures performed annually
worldwide. The entryinto the whole blood market precedes the
planned launch of the company's automated whole blood product,
beginning later this fiscal year.
We are also optimistic about the expected limited market
release of the paperless phlebotomy offering at the end of the
fourth quarter of fiscal 2013. Further, Haemonetics believes that
the emerging markets are a key focus area for future growth of
the company. The company is currently investing more in this
market, especially in China, as over the next five years business
from China is slated for a CAGR (compound annual growth rate) of
20%−25% driven by sales from platelets, cell salvage ("Cell Saver
Elite") and thromboelastography ("TEG").
In addition, over the past 60 hays, all the analysts covering
the stock have raised their estimates for fiscal 2013.
Other Stocks Worth a Look
Apart from Haemonetics, other stocks in the MedTech sector
that are currently performing well include
). All these companies carry a Zacks Rank #1 (Strong Buy).
HAEMONETICS CP (HAE): Free Stock Analysis
SPHERIX INC (SPEX): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
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