Needham analyst Michael Matson has maintained their neutral stance on MASI stock, giving a Hold rating on November 17.
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Michael Matson has given his Hold rating due to a combination of factors surrounding Masimo’s current strategic position and market valuation. The company is undergoing significant changes, including divesting its Non-Healthcare business and appointing a new CEO, Katie Szyman, which indicates a refocus on its core monitoring business. This strategic shift is expected to be elaborated upon during the upcoming investor day, where Masimo will likely outline its key products, strategy, and long-term financial targets.
Despite these positive strategic moves, Matson notes that the consensus estimates for 2025 to 2027 are conservative, and while Masimo’s long-term guidance might slightly exceed these estimates, the expected slower EPS growth beyond 2025 tempers enthusiasm. Additionally, with Masimo’s shares trading at a relatively high multiple of 24.9 times the estimated 2026 EPS, the valuation appears to be fully priced, justifying the Hold rating.
According to TipRanks, Matson is an analyst with an average return of -1.0% and a 41.77% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific, Penumbra, and Hologic.
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.