Omnicell Upgraded to “Outperform” by Zacks (OMCL)
Omnicell (NASDAQ:OMCL) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a report issued on Friday. The firm currently has a $32.00 price objective on the stock. Zacks‘s target price would indicate a potential upside of 20.80% from the company’s current price.
Zacks’ analyst wrote, “Omnicell reported better-than-expected second quarter results beating the consensus on both lines. A balanced segmental improvement was seen on the back of strong demand to upgrade to their G4 platform. However, we are concerned with the escalating product costs. We expect this to continue even in the coming quarter as an unfavorable product mix will lead to a drag in gross margin. Yet, the three-pronged strategy is contributing well to the company’s growth performance. While top-line synergy from the MTS acquisition was a major catalyst, we are also waiting for the successful completion of the impending acquisition of SurgiChem. Besides, several contract wins in the domestic and offshore markets are likely to boost organic growth as well. Accordingly, we upgrade the stock to Outperform. “
Omnicell (NASDAQ:OMCL) traded up 0.55% on Friday, hitting $26.635. 150,906 shares of the company’s stock traded hands. Omnicell has a 52 week low of $20.88 and a 52 week high of $30.33. The stock has a 50-day moving average of $27.63 and a 200-day moving average of $27.38. The company has a market cap of $949.8 million and a P/E ratio of 34.05.
Omnicell (NASDAQ:OMCL) last announced its earnings results on Thursday, July 31st. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.01. The company had revenue of $105.10 million for the quarter, compared to the consensus estimate of $103.23 million. During the same quarter in the previous year, the company posted $0.27 earnings per share. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. On average, analysts predict that Omnicell will post $1.23 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Topeka Capital Markets reiterated a “buy” rating on shares of Omnicell in a research note on Tuesday, July 29th. Finally, analysts at Stephens initiated coverage on shares of Omnicell in a research note on Tuesday, May 20th. They set an “overweight” rating on the stock. Seven equities research analysts have rated the stock with a buy rating, The stock has a consensus rating of “Buy” and an average target price of $31.50.
Omnicell, Inc (NASDAQ:OMCL) is a provider of automated solutions for hospital medication and supply management.
To view Zacks’ full report, visit Zacks’ official website.
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