In a report released yesterday, Stan Berenshteyn from Wells Fargo maintained a Buy rating on Omnicell, with a price target of $40.00.
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Stan Berenshteyn’s rating is based on a combination of factors, including a favorable tariff environment that is expected to benefit Omnicell’s financial performance. The recent US-China deal suggests a post-pause tariff rate of 55%, significantly lower than the previous 145%, which could lead to substantial cost savings for Omnicell. These savings are projected to positively impact the company’s adjusted EBITDA, as each 25% reduction below the 145% tariff level translates into approximately $2 million in savings.
Furthermore, Berenshteyn has adjusted his estimates for Omnicell’s future financial performance, raising the 2025 adjusted EBITDA estimate to $134 million, slightly above the midpoint of the company’s guidance. This revision reflects a more optimistic outlook due to the reduced tariff burden. Additionally, the price target for Omnicell’s stock has been increased to $40, based on a balanced approach using both multiple-based and discounted cash flow valuation methods. These factors collectively support the Buy rating for Omnicell’s stock.
In another report released on July 18, Benchmark Co. also maintained a Buy rating on the stock with a $40.00 price target.