Morgan Keegan Maintains Outperform, $26 Target on Masimo Corporation

Morgan Keegan reiterates its Outperform rating and $26 target price on Masimo Corporation MASI, reflecting a still-favorable risk/reward ratio for the company. Morgan Keegan says, "Masimo's 2011 stock underperformance was driven by issues that negatively impacted financial results, resulting in downward revisions to guidance. That said, we see fundamentals improving in the 2H of 2012 as margins stabilize, new products gain traction, and share repurchase augments EPS. In turn, we believe that the negative sentiment in the stock can abate, providing a lift to the shares. We see the risk/reward in the stock attractive with 15% down and 30% upside potential." MASI closed at $20.04 per share on Friday.