Omnicell Target Price Lowered Amid Uncertain Growth Outlook

BofA Securities analysts adjusted their price target for Omnicell (NASDAQ:OMCL) from $57 to $54, maintaining a Neutral rating on the stock. This revision follows insights from the Facilities and Managed Care Team’s latest quarterly capital expenditure survey, which provides early indicators for 2025 pharmacy IT budget growth.

According to the survey, 2025 pharmacy IT budgets are projected to grow by 4% year-over-year, slightly down from the 4.6% growth forecasted for 2024. Broader capital expenditure trends remain positive, with improving access to financing, fewer project delays or cancellations, and reduced disruptions tied to Change Healthcare. While these factors, along with new product extensions like XT Amplify, support potential growth for Omnicell, the long-term revenue trajectory remains uncertain due to limited visibility on the product revenue ramp.

Omnicell maintains a strong position within the pharmacy automation market, yet the uncertainty surrounding its future growth limits confidence.