Auriga Reiterates Buy, $20 Target on Omnicell

Auriga maintains its Buy rating and $20 target on Omnicell, Inc. OMCL as the company's entrance into China hold potential. Auriga says, “We are reiterating our BUY rating on Omnicell on the heels of its announcement of its first installation in China with Peking Union Medical College Hospital (PUMCH). The addressable market in China for cabinet automation is roughly $200 million, and the PUMCH contract and distributor relationship with China Resources Beijing Pharmaceutical Company presents a huge foot in the door. We are not changing FY12 estimates at this point but believe there could be upside to our model depending on the rate of China adoption.” OMCL closed at $14.68 per share on Monday, up 4.34 percent.