Brean Murray Carret: Upside Looks Likely for Masimo's 4Q

According to a research report published earlier today by Brean Murray Carret, Masimo Corporation MASI is scheduled to report Q4:11 results this evening after close. In the report, Brean Murray Carret commented, “As we had highlighted in our 1/13 update, a careful dig through our model suggests Q4 estimates could be modestly exceeded and 2012 estimates are appropriate; there also appears to be a number of underappreciated tailwinds (new products, OEM partners w/ Rainbow, manufacturing cost reduction efforts) that could further improve the overall picture as 2012 progresses despite the presence of a number of headwinds on which the Street has attached much focus. Our target price of $24 reflects a 19x multiple applied to our 2012 estimate.” Brean Murray Carret maintains its Buy rating on Masimo, which closed yesterday at $21.12.