BTIG Sees +31% Premium to Masimo Shares, Initiates Buy Coverage

In a report published Monday, BTIG analyst Sean Lavin initiated coverage on

with a Buy rating and $32.00 price target citing numerous key reasons. Lavin is optimistic on the future for the medical technology company, seeing limited downside for the underperforming stock. The analyst wrote, “We see multiple things that could move shares higher, the first two being the ones with the largest potential impact in our opinion. Hemoglobin could eventually work near perfectly and if it does we believe adoption would be brisk. Management could significantly reign in expenses moving operating margins meaningfully higher or an acquirer could do this. GE (BTIG Not Rated) and/or Philips (BTIG Not Rated) could fully launch hemoglobin over the next 12-24 months moving Rainbow sales upwards. The company could roll out multiple new products or one that excited investors such as non-invasive glucose monitoring (likely still a few years away). Pulse ox pricing could improve.” BTIG emphasized the consistency of pulse ox, and the possibility for it to continue to improve. “As long as people get sick, get the flu, have surgery, develop breathing issues, etc. pulse ox will be consistently used.” In addition, Lavin expects the hemoglobin device to improve, with sales aided by GE and/ or Philips. Shares of Masimo closed at $23.95 on Monday. Shares are currently up 1.34 percent at $24.47. The firm's price target suggests a 31.85 percent premium.