BTIG Downgrades Masimo Corp. (MASI) to Neutral

BTIG downgraded Masimo Corp. (NASDAQ: MASI) from Buy to Neutral. Analyst Sean Lavin said his thesis has played out and he lowered his rating due to valuation.

"Shares are essentially at an all-time high, having nearly doubled in less than a year. MASI now trades at ~3.3x our NTM rev. estimates and ~33x our NTM EPS est. We believe MASI can grow sales 6-7% and EPS ~ 15% annually going forward. If the company does this shares may continue to move slightly higher, but given this company has a history of sometimes meeting numbers and sometimes missing them, we would rather have more upside to maintain a Buy rating. We feel 3.5 – 4x revenue and ~25x earnings is fair based on our expectations; should shares pull back at some point we may become more interested," said Lavin.

For an analyst ratings summary and ratings history on Masimo Corp. click here. For more ratings news on Masimo Corp. click here.

Shares of Masimo Corp. closed at $38.67 yesterday.

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