Analyst Marie Thibault from BTIG reiterated a Buy rating on Masimo and keeping the price target at $198.00.
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Marie Thibault’s rating is based on Masimo’s strong financial performance and strategic initiatives. The company reported a notable increase in Q3 revenue, surpassing expectations with a total of $371.2 million, which was $4.5 million above consensus estimates. Additionally, Masimo exceeded the consensus estimate for adjusted EPS by 12 cents. The significant growth in incremental new contracts, amounting to $124 million, highlights the company’s ability to secure new business and expand its market presence.
Furthermore, Masimo’s profitability metrics, such as adjusted gross margin and EBIT margin, both outperformed expectations, indicating efficient operational management. The company has also been proactive in using proceeds from the sale of its consumer audio business to repurchase shares, demonstrating a commitment to returning value to shareholders. With a focus on its R&D pipeline and margin expansion, as well as a strategic partnership renewal with Philips, Masimo is well-positioned for future growth. These factors contribute to Thibault’s confidence in maintaining a Buy rating with a price target of $198.