2023-07-19 12:46:15 ET
Stifel has lowered its rating of Masimo Corp. ( NASDAQ: MASI ) to hold in the wake of the medical technology and audio equipment maker's disappointing preliminary Q2 results and adjusted guidance.
The investment bank said that while Masimo's long-term healthcare fundamentals are still intact, the outlook for its consumer division, which includes audio brands like Polk and Denon, is more uncertain.
Stifel said that it while it sees the company working through its current pressures, helped by its "healthy innovation pipeline" and contract backlog of $1.3B to $1.4B, there are "many moving parts." It added that because of this, the bank didn't have it's "usual confidence" in the company's near-to-medium term outlook.
Stifel also lowered it price target to $120 from $205.
More on Masimo:
Masimo stock plunges after-hours in wake of preliminary Q2 report
Masimo gains amid report that dissident directors will be elected to board
ISS recommends Masimo shareholders vote for two dissident board nominees
Masimo Corporation SEC Filing - Quarterly Report (10-Q) May 09, 2023
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Stifel lowers Masimo to hold, cites "disappointing" early Q2 results