KeyBanc downgrades Omnicell on challenged hospital spending

KeyBanc downgraded Omnicell to Sector Weight from Overweight without a price target. The analyst sees a “more muted” earnings and sales outlook for the company and views the stock’s current valuation as fair. The current spending environment for hospital systems as more challenged on XT series cabinets and the more expensive XR2 and IVX robots and workstations, which are being negatively impacted from regulatory changes, the analyst tells investors in a research note. The firm lowered Omnicell’s profitability metrics to reflect less operating leverage in a reduced demand environment, partially offset by cost efficiencies.