UPDATE: Wedbush Initiates Masimo, 'Leading Player in Multi-Billion Dollar Noninvasive Patient Monitoring Market'

In a report published on Monday, Wedbush analyst Tao Levey initiated coverage on

with an Outperform rating and a $28 price target. In the report, Wedbush stated, "The majority of Masimo's revenue is derived from the $1+ billion pulse oximetry market, where it holds the number 2 position and is gaining share. The company's “razor/razor blade” business model, large base of installed monitors, and multi-year exclusive hospital contracts offer a recurring revenue stream with a high degree of visibility. In addition, MASI should finally hit an inflection point with its rainbow technology, as the two largest patient monitoring companies (GE and Philips) are expected to introduce rainbow-enabled systems in 2014." Masimo closed on Monday at $23.18.