KeyBanc reiterates Sector Weight rating on Omnicell stock

Investing.com - KeyBanc Capital Markets maintained its Sector Weight rating on Omnicell (NASDAQ:OMCL), currently trading at $31.61 with a market cap of $1.46 billion, following a non-deal roadshow with company executives last week. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimate.

The investment firm hosted meetings with Omnicell’s founder and CEO Randall Lipps, Vice President of Corporate FP&A James Bass, and Investor Relations representative Kathleen Nemeth across the Midwest region.

KeyBanc noted that hospital end markets remain stable, though there is some caution regarding potential regulatory impacts, particularly concerning Medicaid cuts.

The firm highlighted Omnicell’s ongoing transformation toward total pharmacy automation through AI and cloud technology deployment, with the upcoming Omnisphere launch expected to serve as a major catalyst for this initiative.

KeyBanc expressed increased confidence in Omnicell’s strategy to shift toward more software and service subscription revenue streams, which could allow for more consistent product adoption and help smooth out spending cycles.

In other recent news, Omnicell Inc. reported strong financial results for the second quarter of 2025, surpassing market expectations. The company achieved a non-GAAP earnings per share (EPS) of $0.45, significantly higher than the anticipated $0.27, resulting in a 66.67% earnings surprise. Revenue also exceeded forecasts, reaching $290.56 million compared to the expected $275.28 million, representing a 5.55% surprise. These results indicate strong performance across both of Omnicell’s business segments despite ongoing tariff challenges related to China. In response to these developments, Piper Sandler adjusted its price target for Omnicell to $55.00 from $57.00, while maintaining an Overweight rating. The adjustment reflects concerns over tariffs, although the company’s recent earnings performance remains robust. These updates highlight the company’s ability to navigate current economic challenges while delivering strong financial results.

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