Masimo (MASI) Stock Forecast & Price Target

Masimo Corp is poised for positive financial growth due to anticipated revenue increases across its core SET pulse oximetry business and advanced monitoring solutions, with a projected 17% year-over-year rise in unrecognized contract revenue, amounting to $507 million over the next twelve months. The company is actively investing in key areas such as capnography and hemodynamics, leading to successful account wins and a forecasted EBIT margin expansion to approximately 29.2% and 29.8% in FY26 and FY27, respectively. Furthermore, growth projections indicate a boost in both the domestic and international pulse oximetry markets, alongside significant expansion from new product launches in the advanced monitoring segment, suggesting a strong trajectory for total revenue in the coming years.

Masimo Corp is facing a negative outlook primarily due to the projected decline in operating margins, anticipated to be significantly affected by tariffs, which are expected to impose a $16 million to $17 million impact in FY25. Additionally, various risks, including delays in regulatory approval, pricing pressures, and increased competition, pose substantial threats to the company’s revenue forecasts and overall profitability. Furthermore, the need to adjust revenue expectations for Q4 2025, along with concerns surrounding capital equipment demand and sales force retention, highlights ongoing uncertainties that could adversely impact the company's financial performance in the near term.