UPDATE: Piper Jaffray Lowers PT on Omnicell
In a report published earlier today, Piper Jaffray maintains an Overweight rating on Omnicell (NASDAQ: OMCL) and lowered its price target to $16.
Piper Jaffray notes, “We are raising estimates to account for the completed acquisition of MTS, but lowering our price target to $16 due to the lower cash balance (15x CY13 EPS + Cash). We remain optimistic on future bookings acceleration. Recent customer checks reveal that OMCL is increasingly winning system selection processes due to the superiority of the G4 platform, however upside to bookings did not materialize because CareFusion was able to use its Cerner relationship as a trump card. Our view is that this is a sales execution issue that can be fixed more easily than a product platform issue, and if OMCL continues to maintain a technical lead, bookings growth should follow. Maintain Overweight, Cutting Target to $16 (from $18).”
OMCL closed at $13.95.
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