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Investing.com - BTIG has reiterated its Buy rating and $198.00 price target on Masimo Corp. (NASDAQ:MASI), currently trading at $149.24 with a market capitalization of $8.09 billion, following Apple’s announcement about reintroducing its Blood Oxygen feature for certain Apple Watch models. According to InvestingPro data, 8 analysts have recently revised their earnings estimates upward for the upcoming period.
Apple (NASDAQ:AAPL) revealed Thursday it would restore the Blood Oxygen feature via a software update that allows users to view blood oxygen data on their iPhones instead of directly on their watches. This "redesigned" feature follows a recent U.S. Customs ruling and only affects Apple Watches sold in the U.S. that previously had the feature disabled.
The original Blood Oxygen feature was disabled following an International Trade Commission ruling that took effect in late 2023. In January 2024, U.S. Customs and Border Protection permitted Apple to sell its Apple Watch Series 9 and Ultra 2 with a software workaround that excluded the pulse oximeter function.
Legal proceedings between Masimo and Apple continue on multiple fronts. Apple’s appeal to the Federal Circuit is pending after oral arguments were held on July 7, 2025. Additionally, Masimo’s patent infringement complaint against Apple in the Central District of California is scheduled for jury trial on November 4, 2025, while Apple’s complaint against Masimo in Delaware will be tried later. For deeper insights into Masimo’s financial position and legal risks, InvestingPro subscribers can access comprehensive research reports covering 1,400+ top stocks.
BTIG does not believe the U.S. Customs ruling and Apple’s software update necessarily impact the ongoing legal arguments, noting that recent investor discussions suggested no value was being assigned for a potential litigation win for Masimo. The firm views any legal victories as a "call option" for Masimo and sees a buying opportunity in the stock’s current weakness. InvestingPro data shows the stock has gained 7.63% over the past week, with an overall Financial Health score of FAIR. Net income is expected to grow this year, though current analysis suggests the stock is slightly overvalued relative to its Fair Value.
In other recent news, Masimo Corporation reported its second-quarter 2025 earnings, surpassing analyst forecasts with an earnings per share (EPS) of $1.33, exceeding the expected $1.22. The company achieved revenue of $371 million, slightly above the forecast of $368.64 million. This performance represents a 7% year-over-year increase on a constant currency basis, as noted by Jefferies, who subsequently raised their price target for Masimo to $170 while maintaining a Hold rating. Stifel also reiterated its Buy rating with a $180 price target following the strong quarterly results. Despite the positive earnings, Needham maintained a Hold rating, noting that while revenue and EPS beat expectations, overall revenue growth slowed compared to the previous quarter. In other developments, Apple Inc. has announced the return of its blood oxygen tracking feature for Apple Watch users in the United States after resolving a legal dispute with Masimo. The feature will be reinstated through upcoming software updates. These updates are part of the ongoing changes and developments at Masimo Corporation.
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