Piper Sandler lowers Omnicell stock price target to $55 on tariff concerns

Published 11/08/2025, 14:16
Piper Sandler lowers Omnicell stock price target to $55 on tariff concerns

Investing.com - Piper Sandler reduced its price target on Omnicell (NASDAQ:OMCL) to $55.00 from $57.00 on Monday, while maintaining an Overweight rating on the healthcare technology company. Currently trading at $30.83, the stock remains below analyst targets ranging from $34 to $55, according to InvestingPro data.

The adjustment follows Omnicell’s second-quarter 2025 results, which showed strength across both of the company’s business segments despite ongoing tariff challenges related to China. The company maintains a solid financial foundation with a "GOOD" overall health score from InvestingPro, supported by a moderate debt level and healthy gross profit margin of 43.9%.

Piper Sandler noted that Omnicell raised its calendar year 2025 guidance based on the strong quarterly performance and evolving dynamics around Chinese tariffs.

The firm updated its product gross margin forecast for the second half of 2025 and calendar year 2026 to reflect management’s latest commentary on tariff mitigation efforts, which are expected to eliminate effectively all China tariff impact by the fourth quarter of 2026.

The $55 price target is based on an unchanged 20x multiple of Omnicell’s estimated calendar year 2026 adjusted EBITDA. With current EBITDA at $74.08 million and analysis suggesting the stock is undervalued, investors seeking deeper insights can access comprehensive valuation metrics and 12 additional ProTips through InvestingPro’s detailed research report.

In other recent news, Omnicell Inc. reported impressive financial results for the second quarter of 2025, significantly outperforming market expectations. The company achieved a non-GAAP earnings per share of $0.45, which was notably higher than the anticipated $0.27, representing a 66.67% surprise. Revenue also exceeded forecasts, reaching $290.56 million compared to the expected $275.28 million, marking a 5.55% surprise. These results highlight Omnicell’s strong performance during the quarter. The announcement has been well-received by investors, as reflected in the company’s pre-market trading activity. There have been no recent mergers or acquisitions reported. Analysts have not provided any recent upgrades or downgrades for Omnicell. These developments underscore the company’s robust financial health and operational success in the recent quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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