Analyst Stan Berenshteyn of Wells Fargo maintained a Hold rating on Omnicell (OMCL – Research Report), retaining the price target of $30.00.
Stan Berenshteyn has given his Hold rating due to a combination of factors that suggest moderate growth prospects for Omnicell’s stock (OMCL). The tracking of automation technician openings reveals a slight year-over-year increase, which indicates potential for upcoming revenue contributions from these deployments. Berenshteyn’s analysis estimates that robots will constitute about 7% of total revenue in 2024, with projections based on trailing twelve months of data. The anticipated revenue from robot installations is broken down into product and service categories, with the services component expected to generate recurring income.
However, Berenshteyn’s forward-looking assessment for 2025 indicates no growth in robotic sales based on current trends. This projection, coupled with the irregularity of quarterly data, suggests a level of uncertainty in the company’s growth trajectory. Furthermore, the estimated average sales price of Omnicell’s offerings and the recurring service rate provide a baseline for financial expectations but do not necessarily signal significant expansion. These factors collectively contribute to the Hold rating, reflecting a cautious outlook on Omnicell’s growth and profitability potential in the near term.
In another report released on September 26, Barclays also assigned a Hold rating to the stock with a $39.00 price target.
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Omnicell (OMCL) Company Description:
Omnicell, Inc. engages in the provision of medication management automation solutions and adherence tools for healthcare systems and pharmacies. Its solutions include intelligence; platform and interoperability; central pharmacy dispensing; medication adherence; population health; and point of care automation. The company was founded by Randall A. Lipps in September 1992 and is headquartered in Mountain View, CA.
