Stifel reiterates Buy rating on Masimo stock after solid Q2 earnings

Investing.com - Stifel has maintained its Buy rating and $180.00 price target on Masimo Corp . (NASDAQ:MASI), currently trading at $141.98, following the company’s second-quarter 2025 financial results that exceeded analyst expectations. According to InvestingPro data, analyst targets for the stock range from $170 to $210, suggesting potential upside.

Masimo reported sales of $370.9 million for the quarter, surpassing both Stifel’s and consensus estimates of $368.0 million and $368.7 million respectively. This represents a 7.7% year-over-year increase excluding foreign exchange effects, contributing to the company’s impressive 15.57% revenue growth over the last twelve months. InvestingPro analysis reveals the company maintains a healthy financial position with a current ratio of 2.14, indicating strong liquidity.

The company’s strong performance was driven primarily by consumable sales of approximately $339 million, up about 9% year-over-year excluding foreign exchange, and better-than-expected driver shipments of 63,100 units versus Stifel’s projection of 57,400 units. These positive factors were partially offset by normalized capital sales, which declined approximately 2%.

Masimo has raised its 2025 guidance, with management citing several supporting factors during their earnings call, including multiple recent senior leadership appointments, ongoing salesforce realignment, and CEO Katie Szyman’s commercial and innovation strategies that are expected to sustain or enhance the company’s growth outlook.

The company also highlighted improved operational performance, ongoing tariff mitigation efforts, and lower tariff rates that have pushed earnings per share guidance above initial pre-tariff expectations.

In other recent news, Masimo Corporation reported its second-quarter 2025 earnings, surpassing analyst forecasts with an earnings per share (EPS) of $1.33, compared to the expected $1.22. The company achieved revenue of $371 million, slightly above the projected $368.64 million and reflecting a 7% year-over-year increase on a constant currency basis. Despite the positive earnings, overall revenue growth decelerated from 10% in the first quarter to 7% in the second quarter. Needham maintained its Hold rating on Masimo stock following these results, acknowledging the earnings beat. Jefferies also maintained a Hold rating but raised its price target for Masimo to $170 from $158, citing a lower impact from tariffs. These developments highlight the company’s ability to exceed expectations while facing a slowdown in revenue growth.

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