Oppenheimer Remains a Buy on Omnicell (OMCL)


In a report released today, Mohan Naidu from Oppenheimer reiterated a Buy rating on Omnicell (OMCL), with a price target of $86. The company’s shares closed yesterday at $65.15.

Naidu commented:

“Omnicell reported bookings growth of 26% to beat the top end of guidance ($59M above midpoint). Fairly sizable deals came in ahead of expectations in the quarter boosting bookings. Strong CY19 guidance, which was ahead of our Street-high estimates, further validates the traction the company is getting with its multi-product platform strategy. OMCL’s multiple product launches are starting to deliver results with over 90% of the large deals including multiple products. We believe the transition to a multi-product platform is a key differentiator and is positioning the company as the strategic partner for Rx solutions. The traction with Omnicell’s products makes us believe in higher-than-historical growth for the next few years. Increasing our CY19 estimates to 13.6% growth. Reiterate our Outperform rating and $86 target.”

According to TipRanks.com, Naidu is a 5-star analyst with an average return of 10.9% and a 55.4% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Evolent Health, and Premier Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Omnicell with a $83 average price target, which is a 27.4% upside from current levels. In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $80 price target.

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Based on Omnicell’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $14.79 million. In comparison, last year the company had a net profit of $24.29 million.

Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is negative on the stock.

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Omnicell, Inc. engages in the provision of automation and business analytics software solutions for patient-centric medication and supply management. It operates through Automation and Analytics, and Medication Adherence segments.