UPDATE: Benchmark Initiates Omnicell at Buy on Growth and Earnings Visibility

Benchmark initiated coverage on Omnicell

with a Buy rating and a $19.00 price target. Benchmark commented, "We are initiating coverage of Omnicell at Buy with a $19 price target based on an 18x multiple of $1.05 in EPS we forecast this year. Omnicell offers a good mix of visibility from 80% recurring revenue, and attractive 15%-20% forecast earnings growth, in our view. We anticipate long term expanding demand for Omnicell's medication management systems to control costs and improve healthcare quality by automating manual tasks. The 2012 MTS acquisition opens new markets and demonstrates the accretive power of leveraging Omnicell's strong free cash flow." Omnicell closed at $15.57 on Thursday.