Masimo (MASI) Stock Forecast & Price Target

Masimo Corp has demonstrated a positive outlook due to robust growth trajectories in both its core SET pulse oximetry business and advanced monitoring parameters, underpinned by successful new product launches and increased market share. The company is projected to recognize $507 million in unrecognized contract revenue over the next year, reflecting a 17% year-over-year increase, while also anticipating margin expansions of around 70 basis points and 60 basis points for fiscal years 2026 and 2027, respectively. Furthermore, with growth expectations of 5%-7% in the pulse oximetry market and over 10% growth in international markets and advanced monitoring platforms, Masimo is well-positioned for accelerated revenue growth in the coming years.

Masimo Corp faces significant operational challenges as it anticipates a notable decline in operating margin due to increased tariff impacts, projected to reach $16 million to $17 million for FY25. The company is also experiencing downward pressure on revenue forecasts, particularly for Q4 2025, reflecting concerns over competitive pressures, regulatory delays, and a slowdown in capital equipment demand. Furthermore, multiple operational risks, including supply chain issues and pricing pressures, contribute to an overall cautious outlook on its long-term growth and profitability.