Piper Jaffray Maintains OW Rating, $17 PT On OMCL

Piper Jaffray is maintaining its Overweight rating and $17 PT on Omnicell, Inc. (NASDAQ: OMCL).

According to Piper Jaffray, Omnicell, Inc. reported revenues that beat estimates but missed EPS by a penny mainly due to increased SG&A expenses related to the sales force expansion (58 up from 45).

“Increased sales force should provide upside to 2H'11 bookings and FY12 numbers but the combination of higher expenses related to the sales force and Pandora will impact near term numbers,” Piper Jaffray writes.

“Backlog growth guidance (11% for FY11) is encouraging, although revenue and EPS guidance is not so exciting. Nevertheless, we expect improving hospital CapEx to drive upside. Maintain OW, $17 PT.”

Omnicell currently trades at $13.96.