BofA Securities on Wednesday moved Omnicell (NASDAQ:OMCL) from a Neutral rating to Buy and lifted its price target to $70 from $53. The new valuation aligns closely with InvestingPro’s Fair Value view, which currently indicates the stock may be undervalued and offers notable upside.
The upgrade arrives just ahead of Omnicell’s earnings report, set for Thursday before market open. BofA pointed to a possible "significant upside revision cycle" tied to the initial rollout of the company’s Titan XT product as the primary catalyst for the change.
Market momentum for Omnicell has been strong in recent months. InvestingPro data included by analysts shows a 51.35% price return over the last six months and a Piotroski Score of 9, a metric that BofA and others interpret as a signal of strong underlying financial health.
BofA emphasized Omnicell’s leadership position in automated dispensing cabinets used in hospitals, noting that Titan XT represents the company's first new cabinet since 2017. That timing is significant given market forecasts that currently assume only a 3-4% compound annual growth rate for connected device revenue through 2028, a notable step down from mid-teens growth in the prior cycle.
On the forecast side, BofA’s updated models project that Omnicell’s revenue and EBITDA for 2027/2028 will be 8% and 23% above consensus estimates, respectively. The firm cautioned that fiscal 2026 remains a transition year and may produce only modest revenue contributions from new products in the second half of that year.
From a valuation perspective, BofA highlighted that Omnicell shares currently trade at under 13 times near-trough 2026 EBITDA, compared with a 10-year average multiple of 16x. BofA’s $70 target is derived from applying a 15x multiple to 2028 EV/EBITDA and discounting that figure back to present value.
Other analyst activity
Omnicell has been the subject of several analyst updates in recent weeks. Benchmark raised its price target to $60 while retaining a Buy rating ahead of Omnicell’s 2026 results announcement. BofA itself had earlier adjusted the stock’s price target to $53 while maintaining a Neutral stance following a survey that showed positive trends in pharmacy IT budget growth.
KeyBanc Capital Markets upgraded Omnicell to Overweight and cited the possibility of a "super-cycle" of growth, forecasting stronger company performance after fiscal 2026. Earlier, BofA had increased its target to $46 in response to Omnicell’s medication cabinet launch, and Benchmark had previously lifted its target to $50 following the Titan XT unveiling.
Details disclosed by analysts indicate Titan XT is intended as an enterprise medication dispensing system that integrates with Omnicell’s cloud-based platform. The system is slated to begin replacing older equipment starting in the latter half of 2026, according to the analyst commentary.
Taken together, the cluster of price target increases and rating changes reflects analysts’ more favorable view of Omnicell’s product innovation and expected revenue trajectory, even as 2026 is characterized as a transitional period prior to fuller contributions from the new cabinet platform.