UPDATE: Piper Jaffray Lowering Price Target On Masimo

Piper Jaffray is out with a research report on Masimo Corporation MASI and is lowering its price target to $36 from $38, but is keeping its Overweight rating on shares. In a note to clients, Piper Jaffray writes, "Masimo reported mixed 2Q11 results, with overall revenue missing our and Street expectations, with in-line EPS. Management attributed soft Rainbow results to global uncertainly, but maintained segment guidance of $40M-$50M on the prospects for a 3Q military order. Consistent with an emerging cap-ex pause, driver placements were lower than our expectations (37,300 vs. PJC: 38,208), although up yoy. EPS of $0.28 was in-line with our $0.28 estimate, with a $0.02 tax benefit. We maintain our Overweight rating on MASI shares and are lowering our target to $36 (was $38 price target)." Shares of MASI gained $1.83 yesterday to close at $25.01, a gain of 7.89%.