Oppenheimer Remains Bullish on Omnicell (OMCL) Following Investor Meetings
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Oppenheimer reiterated an Outperform rating and $46.00 price target on Omnicell (NASDAQ: OMCL) after hosting investor meetings with management. OMCL’s win-rate against its primary competitor continues to be attractive with ~100 new clients from Pyxis annually. Also, despite the increased penetration in G4 within customers, target organic revenue growth remains in teens and reaching 15%+ operating margin over the next few years.
Analyst Mohan Naidu commented, "We hosted OMCL management in investor meetings earlier this week that increased our confidence in the traction in the core automation segment and the ongoing integration efforts around Aesynt. The company continues to gain market share (with ~100 new customers/year from Pyxis alone), and the recent Aesynt acquisition opens new cross-sell opportunities in hospitals preferring a centralized pharmacy model. Additionally, the Aesynt integration efforts are on track with functional teams integrated and systems integration ongoing. M5000 product availability is still unclear, but the market opportunity, if the company achieves PV2 level, is quite significant and is likely to provide a tailwind for growth. We believe OMCL is uniquely positioned with its medication management offerings and continues to gain strength. Reiterate our Outperform rating, $46 target."
Shares of Omnicell closed at $39.22 yesterday.
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