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On Saturday, Benchmark maintained a Buy rating and a $40.00 price target on Omnicell (NASDAQ:OMCL) shares, representing a significant upside from the current price of $28.23. According to InvestingPro data, analysts’ targets range from $30 to $57, suggesting potential upside opportunities. The firm’s decision follows Omnicell’s announcement regarding updated financial guidance in light of recent changes in tariffs on imports from China.
Omnicell has revised its adjusted EBITDA forecast for the fiscal year 2025, raising the lower end of its range by $20 million to a new span of $120 million to $145 million. This represents a significant improvement from the current EBITDA of $69.63 million in the last twelve months. For the second quarter of 2025, the company now anticipates adjusted EBITDA to be between $25 million and $31 million, an increase from the previous range of $22 million to $30 million.
The updated guidance comes after the Administration’s decision on May 12, 2025, to temporarily reduce tariffs on Chinese goods from 145% to 30% for a 90-day period, after which the rates will be reassessed. Omnicell’s revised projections take into account the possibility that the tariff rate may return to 145% after the 90-day window. However, the company also indicated that for every 25% the tariff rate remains below 145%, its profitability for the fiscal year 2025 would improve by an additional $2 million.
In addition to updating its financial outlook, Omnicell has also announced the approval of a new stock repurchase program valued at $75 million. This move demonstrates the company’s confidence in its financial health and its commitment to delivering value to its shareholders. With a strong free cash flow yield and moderate debt levels, as highlighted by InvestingPro analysis, the company appears well-positioned to execute this program. The repurchase program is expected to have a positive impact on the company’s stock by potentially reducing the number of shares outstanding and thereby increasing earnings per share. Discover more insights about Omnicell and access detailed financial analysis through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
In other recent news, Omnicell has reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.26, compared to the forecasted $0.21. The company achieved a total revenue of $270 million, marking a $24 million increase year-over-year. Omnicell has also revised its guidance, raising the lower end of its second-quarter and full-year 2025 EPS and EBITDA expectations, reflecting updates related to China tariffs. BofA Securities has responded by increasing Omnicell’s stock price target from $30 to $34 while maintaining a Neutral rating. Meanwhile, Benchmark has adjusted its price target for Omnicell shares to $40 from $62, citing the impact of ongoing tariffs. Additionally, Omnicell has launched a new line of RFID products aimed at improving medication management in healthcare settings. The company has also announced a $75 million share repurchase program and opened a new Innovation Lab in Austin, Texas. These developments highlight Omnicell’s efforts to navigate tariff impacts while continuing to expand its product offerings and strategic initiatives.
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