According to Bank of America, this is a good time for investors to stock up on Omnicell stock as the pharmaceutical industry moves toward automation. Analyst Allen Lutz began reporting on a provider of automated solutions for drug management with a buy rating and $120 price target, saying in a note to clients Friday that he received see strong demand for Omnicell’s software going forward. “Our Buy Rating is driven by OMCL’s leadership position in the autonomous pharma market and the opportunity for double-digit revenue growth and operating leverage over the medium term,” he wrote. “We believe OMCL has a long way to go as the industry is transitioning to autonomous pharmacy.” Although Omnicell operates in a niche environment, Lutz sees growth opportunities in the company’s software as a service (SaaS) and automation solutions. This includes a robot that could help hospitals potentially reduce full-time staff. “The business has gradually gained market share through its expansion from a single solution to offering a suite of software and services that optimize workflow to support the autonomous pharmacy,” says Lutz. “Examining our channel gives us confidence that OMCL is an industry leader and can take advantage of pharmacy automation trends further.” Lutz also said Omnicell is “consolidating its moat” by acquiring new companies that can help it expand into newer and growing niches. Omnicell’s stock has plummeted nearly 44% this year, but Bank of America’s new price target implies a nearly 18% gain from Thursday’s closing price. – CNBC’s Michael Bloom contributed reporting