Stifel cuts Masimo stock price target to $180 from $190

Wednesday - Stifel analysts have lowered the price target on Masimo Corp . (NASDAQ:MASI) shares to $180 from $190, while maintaining a Buy rating on the stock. According to InvestingPro data, the company’s shares currently trade at $148.91, with analyst targets ranging from $170.58 to $215. The adjustment follows Masimo’s first-quarter performance, which exceeded expectations with several positive achievements, including the recent sale of its Consumer Audio division for approximately $350 million. The transaction is expected to close by the end of 2025, allowing the company to concentrate on its core professional healthcare products. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels.

Masimo reported first-quarter sales of $372 million, surpassing both Stifel’s and consensus estimates of $365 million and $367.9 million, respectively. Operating margins for the quarter stood at 28.7%, outperforming the anticipated 27.4% from Stifel and 25.9% from consensus. Earnings per share (EPS) reached $1.35, beating estimates by over ten cents. InvestingPro data shows the company maintains a healthy gross profit margin of 48% and operates with a moderate debt level, with a debt-to-equity ratio of 0.8.

The company’s strong quarterly performance was underpinned by several key factors. Board shipments hit approximately 72.2K units, marking the highest level since the first quarter of 2023. Furthermore, Capital Revenue saw a significant increase of 32% excluding foreign exchange impacts, reversing a trend of declines that had persisted over the past year. Masimo has also been actively working to mitigate the impacts of tariffs.

In addition to these financial metrics, Masimo is focusing on enhancing its growth prospects. The company is making strides in AI-based sensor and monitor upgrades and has undertaken a commercial reorganization. Further details regarding these initiatives are expected to be shared at an Investor Day planned for the fourth quarter of 2025. InvestingPro subscribers can access additional insights, including 8 more ProTips and a comprehensive analysis of Masimo’s growth potential through the exclusive Pro Research Report, which provides detailed financial health scores and expert analysis of the company’s future prospects.

In other recent news, Masimo Corporation reported its first-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.36, compared to the forecasted $1.21. The company’s revenue reached $372 million, slightly above the anticipated $367.84 million, reflecting strong growth in both consumables and capital equipment sales. Despite the earnings beat, BTIG adjusted its price target for Masimo to $193 from $206, maintaining a Buy rating, due to concerns over the impact of tariffs on profitability. Masimo also announced the sale of its Sound United consumer audio segment to Harman International for approximately $350 million, aiming to refocus on its healthcare business. The company continues to project full-year revenue between $1.5 billion and $1.53 billion, representing an 8-11% growth on a constant currency basis. Masimo’s adjusted gross margin for the first quarter was 63.1%, and its operating margin increased to 28.8%, underscoring operational efficiency. The company remains on track to meet its full-year driver shipment guidance of 240,000 to 260,000 units. Despite a recent cybersecurity incident, Masimo does not expect it to impact its financial guidance for the year.

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