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Friday saw BTIG reaffirm its Buy rating on Masimo Corp (NASDAQ:MASI), currently trading at $156.97, with a steadfast price target of $193.00. The medical technology company, with a market capitalization of $8.5 billion, is currently trading above its InvestingPro Fair Value. The endorsement comes after a series of meetings earlier in the week with Masimo’s top executives, including CEO Katie Szyman, in her first investor roadshow since taking the helm. The company has been actively pursuing several strategic objectives since the previous September, including a seamless CEO transition, initiating cost optimization measures, and the successful divestiture of its Consumer business.
Masimo’s management is now concentrating on three main areas: gaining market share in growing segments, updating the existing technology with next-generation solutions, and integrating artificial intelligence into its sensor products. With an overall "GOOD" Financial Health Score according to InvestingPro, and a strong current ratio of 2.17, the company appears well-positioned to execute its strategy. In an 8-K filing prior to the investor meetings, Masimo reaffirmed its financial outlook for fiscal year 2025 and addressed the cybersecurity incident reported in the Q1 earnings call, confirming expectations that it would not materially affect the FY25 projections.
The company has also announced plans for an Investor Day in the fourth quarter, which is anticipated to provide deeper insights into Masimo’s latest product developments. BTIG analysts have consistently highlighted their positive stance on Masimo, based on the company’s track record of surpassing expectations, generating cash, and improving profit margins. InvestingPro analysis reveals that while net income growth is expected this year, five analysts have revised their earnings downwards for the upcoming period. The analysts believe that management’s current focus on the company’s core hospital-based innovations is a step in the right direction, reinforcing their confidence in the firm’s fundamental strengths. Get access to 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Masimo Corporation has reported its first-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.36, compared to a forecast of $1.21. The company achieved a revenue of $372 million, slightly above the anticipated $367.84 million, driven by robust growth in consumables and capital equipment sales. Despite a recent cybersecurity incident, Masimo has assured investors that its 2025 revenue and customer order fulfillment will remain largely unaffected, with manufacturing operations running near full capacity. The company holds cybersecurity insurance expected to cover most remediation costs.
Masimo has also announced the sale of its Consumer Audio division for approximately $350 million, a move seen positively by analysts like those from BTIG, who adjusted their price target for Masimo to $193 while maintaining a Buy rating. Stifel analysts, while lowering the price target to $180, also maintained a Buy rating, noting Masimo’s first-quarter performance exceeded expectations. Additionally, Masimo is focusing on enhancing its growth prospects through AI-based sensor and monitor upgrades and a commercial reorganization.
The company maintains its revenue outlook of $1.50 to $1.53 billion for the full year, reflecting an 8-11% increase year-over-year on a constant currency basis. Despite the impact of tariffs, Masimo is implementing mitigation strategies to manage potential cost increases. Further insights into the company’s strategic initiatives are anticipated at an Investor Day in the fourth quarter of 2025.
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