Masimo (MASI) Stock Forecast & Price Target

Masimo Corp is poised for significant revenue growth driven by its core SET pulse oximetry business and advancements in its monitoring technologies, with the company expecting a 17% year-over-year increase in unrecognized contract revenue amounting to $507 million. The company's investment in advanced monitoring parameters, such as capnography and hemodynamics, is anticipated to further enhance profitability, with projections indicating margin expansions of approximately 70 basis points and 60 basis points for fiscal years 2026 and 2027, respectively. Additionally, the expected growth in the international pulse oximetry market and advanced monitoring platforms positions Masimo favorably for sustained performance, particularly as new product launches begin to contribute more significantly in the latter part of its long-range plan.

Masimo Corp is facing significant challenges that contribute to a negative outlook for its stock, primarily driven by anticipated tariff impacts, which are projected to negatively affect operating margins by approximately 110 basis points in FY25. The company has already experienced tangible effects from tariffs, with a reported $5 million impact on Q3 sales, indicating vulnerability in its financial performance due to external economic pressures. Additionally, a range of risks including increased competition, regulatory delays, and fluctuating hospital capital equipment demand further complicate the company's growth prospects and overall profitability.