Omnicell's Q2 Sets Up More Upside

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About: Omnicell, Inc. (OMCL)
by: Vince Martin
This article is exclusive for subscribers.
Vince Martin
Long/short equity, value, gambling
Summary

Omnicell management insisted that a weak Q1 was an anomaly due to the launch of the new XT Series cabinet - and was proven right by a strong Q2.

Valuation is a bit stretched here, particularly on FY17 numbers - but there's room for a big ramp in 2018.

Investors have to pay for quality here, but there's still a case for a run to $60 over the next 12-18 months.

I argued back in April that Omnicell (NASDAQ:OMCL) had a strong bull case if management was right. And I wish I'd believed them:

Source: Finviz

OMCL did dip briefly after Q1's headline