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Investing.com - Benchmark has reiterated its Buy rating and $40.00 price target on Omnicell (NASDAQ:OMCL), currently trading at $27.82, as the company navigates through tariff uncertainties with China. According to InvestingPro data, analyst targets range from $32 to $57, suggesting significant upside potential for this $1.31 billion market cap company.
Benchmark notes that Omnicell has faced two guidance revisions year-to-date and significant stock price volatility due to changing tariff conditions, particularly related to China. The firm believes consensus estimates have been reduced to levels reflecting nearly worst-case outcomes. InvestingPro analysis indicates the company maintains a FAIR financial health score, with strong free cash flow yield and expectations for net income growth this year. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
The research firm points out that the scheduled August 12 date for tariffs to potentially return to 145% from the current temporary 30% level may not be a firm deadline, and there appears to be little chance rates would revert to the full 145% level. Benchmark references indications that a 55% tariff rate is more likely.
According to Benchmark’s analysis, Omnicell management had previously indicated that for each 25% reduction in tariffs below 145%, fiscal year 2025 profitability would improve by $2 million. The firm calculates that if a 55% rate begins August 12 for the remainder of 2025, non-GAAP EBITDA would improve by approximately $3 million.
Benchmark also highlights that Omnicell continues to execute well on its business plan, with management reaffirming this year’s bookings and revenue guidance as recently as May, leading the firm to conclude that 2025 consensus estimates are "very conservatively set" ahead of second-quarter results.
In other recent news, Omnicell has updated its financial guidance for fiscal year 2025, raising the lower end of its adjusted EBITDA forecast by $20 million to a range of $120 million to $145 million. This adjustment follows a temporary reduction in tariffs on Chinese imports, which has influenced the company’s profitability outlook. Additionally, Omnicell has announced a $75 million stock repurchase program, reflecting confidence in its financial health. Craig-Hallum has reiterated a Buy rating for Omnicell, with a price target of $53, acknowledging the company’s strategic handling of tariff changes. Benchmark also maintained a Buy rating with a $40 price target, while BofA Securities increased its price target to $34 from $30, keeping a Neutral rating. In executive news, Omnicell disclosed a transition in its CFO position, as Nchacha Etta will step down by November 2025 or upon the appointment of a successor. The company has also amended its 2009 Equity Incentive Plan, adding 1,750,000 shares for issuance, following stockholder approval. These developments indicate ongoing strategic adjustments and financial planning at Omnicell.
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