Morgan Stanley Reports Haemonetics Recovery On Track

In a research report published today, Morgan Stanley said Haemonetics' HAE FYQ12 results suggest the recall recovery is on track, but FY13 guidance was below the Street. According to the report, “Haemonetics' preliminary FY13 outlook calls for (mid-single) digit growth on the top line (including (mid-single) digit growth in the plasma business, where 75% of contracts were renewed through FY17) and low double digit earnings growth. Top line guidance was consistent with our model and Street estimates of ~6% revenue growth in FY13. However, the earnings outlook drew short of consensus estimates that called for 17% EPS growth in FY13, though it was more consistent with our 13% estimate.” Morgan Stanley maintains its Underweight rating and $55 PT on Haemonetics, which closed yesterday at $66.28.