Masimo's Skyrocketing Growth: Analyst Boosts Price Target Amid Exciting New Ventures

Needham analyst Mike Matson reiterated a Buy rating on the shares of Masimo Corporation MASI, raising the price target to $207.00 from $192.00.
The analyst believes that new product launches, market share gains, and new businesses such as hospital automation should enable continued strong growth in Masimo's medical business.
Mainly, the acquisition of Sound United provides the company with strong consumer brands and a distribution channel for its nascent consumer health business, including its W1 smartwatch.
Masimo's consumer health strategy is progressing and its Opioid Halo, Stork, and Freedom watch products are now available for pre-order, the analyst noted.
The analyst expects high-single-digit (or better) revenue growth, combined with product mix, cost-reduction efforts, and accretion from the Sound United Deal, to drive mid-teens (or better) earnings growth.
In the analyst's bull case scenario, Organic revenue growth is likely to approach the double-digits, driven by market share gains in monitoring and new medical products.
A favorable outcome from the company's ITC complaint against Apple Inc. AAPL is also likely to be a potential upside driver.
Related: Apple Watch Faces Potential Import Ban As US Judge Rules Against Tech Giant In Patent Infringement Case
Price Action: MASI shares are trading lower by 6.09% at $173.02 on the last check Wednesday.

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