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Needham believes Masimo may separate Sound United business after board shakeup

Needham analyst Mike Matson keeps a Buy rating and $207 price target on Masimo but contends that with Politan Capital Management nominees winning board seats, the company may elect to separate its Sound United business. A sale or spin-off of Sound United would be a catalyst that would drive Masimo’s multiple and share price higher despite some modest earnings dilution and also allow the company continue to pursue its consumer healthcare strategy without Sound United, the analyst tells investors in a research note.

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