What Happened?
Shares of medical tech company Masimo (NASDAQ: MASI) jumped 3.5% in the morning session after the company presented an upbeat long-term financial outlook at its 2025 Investor Day, prompting positive reactions from analysts.
During the event, management outlined its strategy through 2028, which included ambitious financial goals. The company projected revenue to grow at a rate of 7% to 10% each year and aimed for operating margins to reach approximately 30% by 2028. Additionally, Masimo forecasted earnings per share of $8.00 by 2028 and cumulative operating cash flow of about $1 billion from 2026 to 2028. Following the presentation, analyst sentiment was positive. For instance, BTIG raised its price target for the stock to $200 from $198 and maintained its "Buy" rating. Similarly, Stifel reiterated its "Buy" rating, noting that Masimo's earnings projection exceeded their own estimates.
After the initial pop the shares cooled down to $143.44, up 0.8% from previous close.
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What Is The Market Telling Us
Masimo’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 4.4% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Masimo is down 14.9% since the beginning of the year, and at $143.44 per share, it is trading 24.8% below its 52-week high of $190.63 from March 2025. Investors who bought $1,000 worth of Masimo’s shares 5 years ago would now be looking at an investment worth $536.15.
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