Travis Steed, an analyst from Bank of America Securities, reiterated the Hold rating on Masimo. The associated price target remains the same with $162.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Travis Steed’s rating is based on a combination of factors that reflect both potential growth and current uncertainties. Masimo’s long-range plan (LRP) suggests a promising revenue growth trajectory of 7-10% through 2028, with expectations of achieving 30% operating margins and $8 in earnings per share (EPS) by that year. This growth is supported by the introduction of innovative products, such as new pulse oximetry sensors, which are expected to drive market share gains due to their unique capabilities. However, these developments are projected to significantly impact revenues only in the later years of the LRP, particularly in 2027 and 2028.
Despite the optimistic projections, there are considerations regarding when the stock will start reflecting this anticipated growth acceleration. The market’s current valuation may not fully account for the potential upside, and there is uncertainty about how conservative or achievable the LRP targets are. Additionally, the integration of new products with original equipment manufacturer (OEM) platforms will take time, which could delay the realization of expected benefits. Given these factors, Travis Steed maintains a Hold rating as he continues to evaluate the balance between the potential upside and the inherent risks.