Bank of America has upgraded Omnicell to Buy from Neutral, anticipating revenue revisions driven by the launch of its next-generation automated dispensing cabinet, Titan XT. This upgrade marks the first major refresh since 2017, potentially sparking a multi-year acceleration in connected device revenue. The bank raised its price target to $70 from $53, reflecting this positive outlook.

BofA's optimistic view contrasts with current market forecasts, which anticipate modest growth. Analysts predict Titan XT shipments will begin in the second half of 2026. This transition period may show only small contributions initially. However, BofA sees the long-term revenue opportunity from Titan XT at over $900 million by 2029.

Furthermore, the bank sees margin upside as the cycle matures, estimating more than 3 percentage points of upside to consensus EBITDA margins by 2028. This is supported by higher margins on new products. Omnicell shares currently trade below their 10-year average multiple, suggesting potential for further expansion as the product refresh gains momentum.