Masimo (MASI) Stock Forecast & Price Target

The analysis highlights that Masimo Corp is expected to experience significant revenue growth driven by both its core SET pulse oximetry business and advanced monitoring technologies such as capnography and hemodynamics, particularly through ongoing expansion in international markets. The company anticipates a 17% year-over-year increase in unrecognized contract revenue totaling $507 million, alongside projected EBIT margin expansions of approximately 70 basis points in FY26 and 60 basis points in FY27, indicating strong operational improvements. Furthermore, the expected acceleration in total revenue growth later in the long-range plan, fueled by impactful new product launches, underscores the potential for sustained financial performance in the upcoming years.

Masimo Corporation is facing significant challenges that contribute to a negative outlook on its stock, primarily driven by an anticipated increase in tariff impacts that are expected to reach $16 million to $17 million for FY25, which could negatively affect operating margins by approximately 110 basis points. Additionally, the company is experiencing downward pressure on revenue forecasts, highlighted by a $5 million loss attributed to tariffs in Q3, and a cautious outlook on long-term growth driven by heightened competition and regulatory delays. Key risks also include potential adverse effects from issues related to supply chains, pricing pressures, hospital demand for capital equipment, and an unstable relationship with OEM partners.