Auriga Reiterates a 'Buy' on Omnicell (OMCL); Backlog Disappoints While Margins on Track
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Price: $37.30 -0.9%
Rating Summary:
12 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga reiterates a 'Buy' on Omnicell (NASDAQ: OMCL) price target cut $1 to $19.
Auriga analyst says, "Some large contract slippages late in the quarter led to a year-end backlog of $134 million, up 6% but below expectations of 9% growth. As such, the revenue guide was below consensus. As we have published previously, we were hard-pressed to get comfortable with revenue consensus of 12% growth and even our street-low estimate ($268MM) was slightly ahead of management's guide. As a general statement, we think double digit growth will be hard to come by in this market, due to market inertia, high penetration of cabinets, and competitive factors at work (i.e., pricing pressure and displacements). Nonetheless we believe OMCL is well-positioned as a solid #2 player in the space. We would be buyers on any weakness in the shares."
For an analyst ratings summary and ratings history on Omnicell click here. For more ratings news on Omnicell click here.
Shares of Omnicell closed at $16.46 yesterday.
Auriga analyst says, "Some large contract slippages late in the quarter led to a year-end backlog of $134 million, up 6% but below expectations of 9% growth. As such, the revenue guide was below consensus. As we have published previously, we were hard-pressed to get comfortable with revenue consensus of 12% growth and even our street-low estimate ($268MM) was slightly ahead of management's guide. As a general statement, we think double digit growth will be hard to come by in this market, due to market inertia, high penetration of cabinets, and competitive factors at work (i.e., pricing pressure and displacements). Nonetheless we believe OMCL is well-positioned as a solid #2 player in the space. We would be buyers on any weakness in the shares."
For an analyst ratings summary and ratings history on Omnicell click here. For more ratings news on Omnicell click here.
Shares of Omnicell closed at $16.46 yesterday.
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