Needham analyst Michael Matson has maintained their neutral stance on MASI stock, giving a Hold rating on November 17.
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
Michael Matson has given his Hold rating due to a combination of factors surrounding Masimo’s current business strategy and financial outlook. The company has recently shifted its focus back to its core monitoring business after divesting its Non-Healthcare segment, which signifies a strategic realignment under new leadership with Katie Szyman as CEO. This refocus is accompanied by a presentation of key products, strategies, and long-term financial targets that exceed consensus expectations, with a projected revenue CAGR of 7-10% and an EPS CAGR of approximately 13% for 2026 to 2028.
However, despite the promising long-term guidance, the lack of specific 2026 guidance and the anticipated slower growth in revenue and EPS for 2026, as the company adjusts to the changes and new products gain traction, suggests a transitional period. This potential for slower growth, as Masimo laps the extra week in 2025, supports the decision to maintain a Hold rating, reflecting a cautious optimism about the company’s future performance while acknowledging the near-term uncertainties.
In another report released on November 17, Bank of America Securities also initiated coverage with a Hold rating on the stock with a $162.00 price target.