Needham Believes Masimo Corp (MASI) Won’t Stop Here

In a report released today, Michael Matson from Needham initiated coverage with a Buy rating on Masimo Corp (NASDAQ: MASI) and a price target of $139. The company’s shares closed yesterday at $121.55, close to its 52-week high of $121.96.

Matson said:

“MASI has built a better pulse oximeter and the medical world is beating a path to its door. We expect the Philips partnership to accelerate Product revenue growth but we also expect the upcoming Royalty & Other revenue cliff to hurt total revenue growth and margins. Taking all of this into account along with consensus estimates, we believe that MASI can continue to deliver upside and we initiate coverage with a Buy rating.”

According to, Matson is a 5-star analyst with an average return of 15.2% and a 65.3% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Masimo Corp has an analyst consensus of Moderate Buy, with a price target consensus of $121.33.

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Based on Masimo Corp’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $43.85 million. In comparison, last year the company had a net profit of $46.68 million.

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Masimo Corp. is a medical technology company, which engages in the development and manufacture of non invasive patient monitoring technologies, medical devices, and sensors. Its products include continuous monitors, patient-worn monitors, hospital automation connectivity, capnography and gas, data download and analytics, and sensors and accessories.