Back to top

Analyst Blog

Zacks Equity Research

Masimo Rolls Out New Product

COV MASI

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Masimo Corporation ((MASI - Analyst Report)), a leader in non-invasive patient monitoring technology, recently announced the limited market release of its Universal ReSposable Pulse Oximetry Sensor System. The ReSposable sensor offers measure-through motion and low perfusion performance and accuracy of Masimo’s patented Signal Extraction Technology (SET).

The commercialization of the ReSposable sensor will enable the company to achieve environmental goals. Masimo’s ReSposable sensor is a cost-effective solution for hospitals to deliver quality care. Hospitals, under pressure to curtail costs, are expected to opt for the company’s newest sensor.

According to Masimo, the size of the pulse oximetry market was over $1 billion in 2011 with the sensors contributing the lion’s share to the market. Thus, the ReSposable sensor represents sizeable commercial opportunity.

The market adoption of the ReSposable sensor will increase Masimo’s installed base leading to higher recurring revenue in the years ahead. The company’s installed base for its pulse oximeters and original equipment manufacturer (OEM) monitors with SET is currently over a million units.

Masimo is a market leader in the pulse oximetry monitoring equipment industry. The company’s prospects are encouraging, given the sizeable global market opportunity, adoption of pulse oximetry in non-critical areas of the hospital and growing barriers to entry due to additional non-invasive parameters.

While Masimo’s patented SET offering remains its mainstay, the rainbow measurements represent another growth driver beyond hospital care. However, the company’s reliance on third-party providers like OEMs for a part of its business and customer concentration raises concern. Additionally, we remain concerned about Masimo’s reliance on group purchasing organizations for the sale of its pulse oximetry products to hospitals in the domestic market.

We also note Covidien’s (COV - Analyst Report) effort to expand its oximetry and monitoring products portfolio. Earlier this month, the company won U.S. Food and Drug Administration (FDA) 510(k) approval as well as European Economic Area (EEA) CE Mark clearance for its Nellcor Bedside Respiratory Patient Monitoring system.

We currently have a long-term ‘Neutral’ recommendation on Masimo.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%