Analyst Says This MedTech Giant Stock Offers 'Too Much Optionality,' Upgrades Rating
- Raymond James upgraded Masimo Corporation (NASDAQ: MASI) from Market Perform To Outperform with a price target of $187 and says that no other company in its coverage offers as many paths to incremental value creation.
- The analyst writes that the stock setup seems attractive despite the uncomfortable headline P/E multiple.
- A vibrant pipeline adds new growth drivers and potential upside to year estimates.
- The analyst sees the 2H23 approval/launch of Stork (baby monitor) as a near-term sentiment driver, with hearables/wearables as a potential long-tailed growth opportunity.
- The IP suit with Apple Inc (NASDAQ: AAPL), as well as the activist involvement, add optionality to the stock.
- Related: Apple Watch Faces Potential Import Ban As US Judge Rules Against Tech Giant In Patent Infringement Case.
- The stock has been a modest outperformer YTD (MASI is +500 bp vs. Med Tech/XHE), but the stock was one of the worst Med Tech performers of 2022 (-50%).
- While expecting periodic dislocations along the way, the analyst believes the value creation opportunity is significant.
- Price Action: MASI shares are up 3.62% at $166.72 on the last check Wednesday.
Latest Ratings for MASI
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Needham | Upgrades | Hold | Buy |
| Feb 2022 | UBS | Maintains | Buy | |
| Feb 2022 | Piper Sandler | Downgrades | Overweight | Neutral |
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