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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Omnicell (NASDAQ:OMCL) to $40.00 from $37.00 on Monday, while maintaining an Overweight rating on the stock, citing a more favorable tariff outlook. Currently trading at $26.88 with a market cap of $1.26 billion, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value.
The firm revised its 2025 adjusted EBITDA estimate for Omnicell to $134 million from $127 million, reflecting reduced tariff impacts following a U.S.-China deal that points to a post-pause tariff rate of 55% on Chinese imports, significantly lower than the previous 145% rate. According to InvestingPro data, analysts maintain a bullish consensus on the stock, with price targets ranging from $32 to $57.
Wells Fargo calculates that each 25% reduction in tariffs below the 145% level reduces the drag on Omnicell’s 2025 results by approximately $2 million, which translates to about $7.2 million in potential savings at the expected 55% rate.
The bank also raised its 2026 and 2027 adjusted EBITDA estimates to $147 million and $171 million respectively, up from previous estimates of $131 million and $156 million, representing improvements of 6% to 12% compared to consensus forecasts.
The new price target is based on a 50/50 weighting of multiple-based and DCF-based valuations, with Wells Fargo applying a 12x EV/EBITDA multiple to its raised 2026 EBITDA estimate, resulting in a $39 valuation component alongside a $40 DCF-based valuation. The company currently trades at an EV/EBITDA multiple of 18.07x, with InvestingPro highlighting additional metrics and 8 more key insights available to subscribers through its comprehensive Pro Research Report.
In other recent news, Omnicell has announced a transition in its executive leadership team, with Nchacha Etta stepping down as Chief Financial Officer effective November 15, 2025, or upon the appointment of a successor. This move is part of Omnicell’s broader strategic adjustments. Additionally, Omnicell has revised its adjusted EBITDA forecast for fiscal year 2025, increasing the lower end of its range by $20 million to a new span of $120 million to $145 million. The company expects second-quarter 2025 adjusted EBITDA to be between $25 million and $31 million, reflecting recent tariff adjustments on Chinese imports.
Benchmark and Craig-Hallum have both reiterated Buy ratings on Omnicell, with price targets of $40.00 and $53.00, respectively. These ratings come amid tariff uncertainties and adjustments, with Benchmark noting potential profitability improvements if tariffs remain below 145%. Omnicell’s stockholders have also approved an amendment to the 2009 Equity Incentive Plan, adding 1,750,000 shares of common stock authorized for issuance. This decision was part of the company’s annual stockholder meeting, where other key proposals, including executive compensation and the election of directors, were confirmed.
Furthermore, Omnicell has announced a $75 million share repurchase program, reflecting confidence in its financial health and commitment to shareholder value. Craig-Hallum highlights the company’s valuation as compelling, with expectations for revenue stabilization and growth in the coming years. These developments underscore Omnicell’s strategic maneuvers amid evolving market conditions.
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