Masimo (MASI) Stock Forecast & Price Target

Masimo Corp has demonstrated strong operational performance, evidenced by a 9% year-over-year revenue growth with notable contributions from both its healthcare and non-healthcare segments, which grew 9% and 11% year-over-year, respectively. The company achieved significant improvements in profitability, with gross margins rising by 240 basis points and operating margins increasing by 570 basis points compared to the previous year. Furthermore, management's optimistic outlook is underscored by reaffirming 2025 revenue guidance and raising earnings per share expectations, supported by anticipated market share gains and the launch of new products.

Masimo Corp's revenue growth has shown a notable decline, with a drop from 12% in 3Q24 to 9% in 4Q24, and the company is forecasting further slowing into mid-single digits due to decreased market share gains and lackluster new product sales. This downturn is compounded by the decline in organic revenue across both healthcare and non-healthcare segments, highlighting significant challenges in maintaining operational momentum. Additionally, potential risks such as manufacturing challenges, sales weaknesses from its Sound United division, and impacts from GLP-1 weight loss drugs pose further threats to expected profitability and market position.