Allen Lutz, an analyst from Bank of America Securities, reiterated the Hold rating on Omnicell (OMCL – Research Report). The associated price target remains the same with $46.00.
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Allen Lutz has given his Hold rating due to a combination of factors that balance both positive and cautious outlooks on Omnicell’s performance. While the company has excelled in recent quarters by optimizing costs and broadening its product pipeline, sustaining growth remains uncertain beyond the current fiscal year. Omnicell has shown strength in its Advanced Services segment and increased demand in Specialty pharmacy, supporting margin and profit improvements.
Despite these positive developments, Lutz maintains a cautious stance on future product revenue growth. The FY25 bookings guidance indicates a less-than-ideal book-to-bill ratio, suggesting a weaker backlog going into FY26. Additionally, the lower price point of XTExtend upgrades compared to standard XT cabinets poses challenges for future product bookings. As such, while Omnicell holds a leading position in pharmacy automation and has made commendable strides in cost optimization, the uncertainties surrounding future growth prospects warrant a Hold rating.
According to TipRanks, Lutz is a 5-star analyst with an average return of 10.8% and a 67.05% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Omnicell, and Cardinal Health.
In another report released on February 2, Wells Fargo also maintained a Hold rating on the stock with a $40.00 price target.