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Investing.com - Piper Sandler maintained its Overweight rating and $200 price target on Masimo Corp . (NASDAQ:MASI), currently trading at $165.05 with a market capitalization of $8.8 billion, on Monday following management meetings with the medical technology company's leadership team. According to InvestingPro data, the company maintains a "GOOD" overall financial health score.
The research firm highlighted its first in-person interactions with Masimo's new CEO Katie Szyman, along with CFO Micah Young and IR Eli Kammerman, expressing confidence in the company's future direction under the new leadership. The company has demonstrated strong historical performance with a 17% revenue CAGR over the past five years.
Piper Sandler noted that "greater degree of business and commercial sophistication" would likely be applied across Masimo, which the firm believes will be "pivotal" in helping the company enter its next growth phase while sustaining share-gain momentum and high-single-digit revenue growth over the coming years.
The firm also pointed to near-term positive factors, including reduced gross headwinds from tariffs due to de-escalation and ongoing mitigation efforts, which could lead to higher consensus estimates on Wall Street.
Masimo remains one of Piper Sandler's "top ideas for the next year," according to the research note, with the firm maintaining its $200 price target for the medical device manufacturer's stock.
In other recent news, Masimo Corporation has reported robust first-quarter financial results, with sales reaching $372 million, surpassing both Stifel's and consensus estimates. This performance was bolstered by a significant increase in Capital Revenue and a high level of board shipments. Despite a recent cybersecurity incident, Masimo reassured investors that its 2025 revenue and customer order fulfillment remain on track, with manufacturing operations nearly at full capacity. BTIG has maintained a Buy rating on Masimo, adjusting the price target to $193, while Stifel also kept a Buy rating but lowered the price target to $180.
Masimo's recent sale of its Consumer Audio division for approximately $350 million is expected to close by the end of 2025, allowing the company to focus on its core healthcare products. The company also reported a 10.5% year-over-year increase in first-quarter revenue on a constant currency basis, with adjusted gross and EBIT margins aligning with or surpassing expectations. Analysts at BTIG have highlighted Masimo's efforts in AI-based sensor upgrades and a commercial reorganization, with further insights anticipated at an Investor Day in the fourth quarter.
Despite the challenges posed by tariffs, Masimo is working on mitigating impacts and maintaining its revenue outlook of $1.50-$1.53 billion for the year. The company has also confirmed that the cybersecurity incident is expected to have a non-material impact on its financial projections. Masimo's proactive measures and clear communication regarding the incident have been noted positively by investors and analysts alike.
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