Masimo (MASI) Stock Forecast & Price Target

Masimo Corp is poised for growth due to the expansion of its core SET pulse oximetry business and the successful introduction of advanced monitoring parameters, which have contributed to an increase in revenue across various healthcare sectors. The company anticipates a consistent improvement in EBIT margins, projecting increases of approximately 70 basis points in FY26 and 60 basis points in FY27, leading to margins of 29.2% and 29.8%, respectively. The expected acceleration in total revenue growth is complemented by strong market dynamics, including a 10%+ growth in international pulse oximetry sales and sustained advancements in newly launched products across the monitoring spectrum.

The outlook for Masimo Corp is negatively impacted by a projected $16M-$17M adverse effect from tariffs in FY25, which is anticipated to decrease operating margins by approximately 110 basis points and adjusted earnings by $0.22-0.24. Additionally, the company faces multiple risks, including heightened competition, pricing pressure, regulatory delays, and potential adverse effects on relationships with original equipment manufacturer (OEM) partners, which could further strain financial performance. The unpredictability of quarterly revenue stemming from shifts in installations and orders adds to the challenges, making it difficult to maintain a stable growth and profitability trajectory.