MASI: Renewed Philips Partnership Will Drive Outperformance Despite Market Challenges

Analysts have adjusted their price target for Masimo downward from approximately $188 to $183. This change is attributed to shifts in revenue growth estimates and a strengthening profit margin following recent partnership developments and ongoing market challenges.

Analyst Commentary

Recent research coverage has provided insight into both the opportunities and risks facing Masimo, particularly in light of its renewed and expanded partnership with Philips, ongoing operational strategies, and broader market conditions.

• Bullish analysts highlight the renewal and expansion of the partnership with Philips as a major positive. This change indicates improved prospects and reduces previous uncertainties around Masimo’s strategic direction.
• The company’s operating efficiency and recent innovative initiatives are viewed as supportive of stronger execution, helping Masimo navigate challenging industry conditions.
• There is a belief that despite market turbulence, including economic pressures and supply chain disruptions, Masimo’s adaptability and improved profit margins could enable it to outperform peers over the medium term.
• Some analysts consider the current pullback in Masimo’s share price as a potential buying opportunity for long-term investors, given the company’s fundamentals and recent positive developments.

• Bearish analysts remain cautious and note that lowered growth estimates and persistent market headwinds could continue to restrain near-term valuation upside for Masimo.
• There is concern that macroeconomic challenges, such as a softer global economy and potential impacts from rate hikes, may dampen demand within the company’s key markets.
• Some research suggests a wait-and-see approach and emphasizes that the long-term impact of the recent partnership developments is not fully certain and broader risks remain.
• Slower-than-expected recovery in core markets or renewed volatility could impact the pace at which Masimo is able to realize the benefits from its recent strategic decisions.

What's in the News

• The company completed the repurchase of 1,344,164 shares for $197.86 million under the buyback program announced in August 2022. This represents 2.47% of shares as of September 2025 (Key Developments).
• The company hosted an Analyst/Investor Day that covered the business overview, innovation pipeline, commercial growth strategy, and long-term financial outlook (Key Developments).
• The company announced findings from an exploratory study indicating that Masimo SET pulse oximetry performed accurately in critically ill adults of all skin tones, with zero occult hypoxemic events (Key Developments).
• Research was published demonstrating that continuous monitoring with Masimo technologies resulted in significant cost savings and improved patient outcomes at Dartmouth-Hitchcock Medical Center (Key Developments).
• The company renewed and expanded a multi-year strategic partnership with Royal Philips, which will accelerate integration of Masimo technologies into Philips patient monitors and facilitate co-promotion of next-generation artificial intelligence-based monitoring solutions (Key Developments).

Valuation Changes

• Fair Value: The fair value estimate has declined modestly to $183.13, down from $187.57.
• Discount Rate: The discount rate has risen slightly, increasing from 7.57% to 7.87%.
• Revenue Growth: Projected revenue growth shows a further decrease, now at negative 5.82 percent compared to the previous estimate of negative 5.05 percent.
• Net Profit Margin: Margins have improved, with the latest figure at 16.45 percent, up from 15.92 percent.
• Future P/E: The anticipated price-to-earnings ratio has fallen to 40.62 times from 44.54 times.