Omnicell’s Positive Outlook: Buy Rating Supported by Favorable Tariff Changes and Stock Repurchase Program

Omnicell (OMCL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Bill Sutherland from Benchmark Co. maintained a Buy rating on the stock and has a $40.00 price target.

Bill Sutherland has given his Buy rating due to a combination of factors that indicate a positive outlook for Omnicell. The company has recently updated its financial guidance for FY25 and 2Q25, reflecting a favorable change in tariff rates on imports from China, which are expected to decrease significantly for a temporary period. This reduction in tariffs has led Omnicell to increase its adjusted EBITDA guidance, suggesting improved profitability prospects.
Additionally, Omnicell has announced a new $75 million stock repurchase program, which is often seen as a signal of confidence in the company’s future performance and can enhance shareholder value. These strategic moves, combined with the potential for further financial improvement if tariffs remain lower than anticipated, support the Buy rating as they position Omnicell for stronger financial performance in the coming periods.

According to TipRanks, Sutherland is an analyst with an average return of -1.7% and a 39.78% success rate. Sutherland covers the Healthcare sector, focusing on stocks such as AMN Healthcare Services, Omnicell, and Surgery Partners.

In another report released today, Wells Fargo also reiterated a Buy rating on the stock with a $37.00 price target.