Raymond James analysts increased their price target for Masimo (NASDAQ:MASI) to $194 from $170, maintaining an Outperform rating on the stock. The revision reflects optimism about the company’s strategic shift back to its core healthcare business and its ability to unlock sustainable growth.

Masimo’s renewed focus on healthcare presents a significant opportunity for earnings expansion, with the potential for EPS to grow at a 15% or higher annual rate over the coming years. This growth is expected to be fueled by unique margin expansion initiatives and a newly appointed board of directors committed to enhancing profitability.

While the timing of these benefits may vary, Raymond James’ analysis underscores confidence in the company’s ability to deliver long-term value. With its strengthened leadership and a clear path to operational efficiency, Masimo is positioned to amplify its core earnings power.