Omnicell price target lowered to $39 from $56 at Wells Fargo

Wells Fargo lowered the firm’s price target on Omnicell to $39 from $56 and keeps an Underweight rating on the shares. The analyst is less optimistic over the company’s bookings growth in 2024 and 2025 and also thinks its robot installs are tracking below the trend needed to achieve 2024 Advanced Services consensus estimates. The firm’s base case now considers it unlikely that Omnicell’s uptake in robotic equipment and competitive displacements will overcome the drag on XT-upgrade cycle nearing completion. Until sales expectations are de-risked, EBITDA upside alone isn’t likely to result in sustainable advancement in the stock, the analyst tells investors in a research note.