Maxim Group & H.C. Wainwright Analysts Confirm Co-Diagnostics (NADSAQ:CODX) Buy Rating with PTs of $20 and $29

New York City, Nov. 24, 2020 (GLOBE NEWSWIRE) -- The global upsurge in COVID-19 has kept testing and Co-Diagnostics (NASDAQ: CODX) under the analysts’ microscope. 

Within its client circular, the analyst from H.C. Wainwright & Co. predicted that Co-Diagnostics' Logix Smart ABC (Influenza A/Influenza B/COVID-19) and Logix Smart SARS-CoV-2 (genes RdRp/E) multiplex tests, which it considers both highly accurate and affordable, could drive future domestic and international sales. This followed the company announcing they had obtained CE markings for both tests, after already having begun distributing the ABC test on a Research Use Only (RUO) basis to U.S. CLIA laboratories in the first week of October 2020.

The importance of achieving a CE marking for the new test cannot be overemphasised since it allows this new test to be freely marketed and sold in all European Member states, as well as any other region that accepts a CE marking as valid regulatory approval. 

“We believe the company may seek Emergency Use Authorization (EUA) and ultimately 510(K) clearance for the ABC multiplex panel. This panel could drive both near-term and long-term sales, in our view, as patients presenting flu-like symptoms are likely to be required to test for COVID-19 even after the COVID-19 spread has largely resolved,” Wainwright analyst Yi Chen wrote.

He adds: “We expect the company to continue to report top-line revenue similar to levels seen in 2Q20 and 3Q20. Our revenue projections for 4Q20 and the next 12 months (4Q20 to 3Q21) are $22M and $90M, respectively. The company’s operations could be sustainably profitable, in our view, particularly given the recent resurgence of the COVID-19 pandemic.“

Further mentions of note were the company’s saliva-based CRL Rapid Response COVID-19 test, which is already being sold through its partnership with Clinical Reference Lab.   With this technology being further perfected, the implication is that it could propel top-line growth over the next few quarters.

Wainwright currently have a Buy rating on the company with a price target of $29 per share.

The Maxim Group  also maintained a Buy rating albeit with a price target of $20 per share.  While recognising that the Q3 results were lower than some had hoped, analyst Jason McCarthy strongly believes that the company may surprise the street with a lot more upside. 

“…see it from our perspective and there are a lot of positives in this story and what CDI has accomplished in 2020 has been impressive. In less than a year, the company has advanced essentially years, in our view.

“COVID pandemic has whipsawed the markets, especially those companies right in the thick of it, like CDI. That said, the miss on revenue should not detract from the big picture for CDI. COVID testing with PCR is here to stay and what CDI should have, even without any further growth, is a baseline of $70M-$100M in revenue per year and a base to grow its agro, oncology, and infectious diseases tests (oral saliva one-step COVID, ABC for flu, and COVID combined, TB, HepB, vector borne diseases and more),” the analyst said.

Mr. McCarthy continued, “Let's also first clear up something that may be confusing to the street. Important to understand is that the company is not a CLIA lab actually performing PCR tests for COVID. CDI sells the actual PCR test kit with CoPrimers to the CLIA labs…This difference between CDI and CLIA labs or large testing providers like a LabCorp or Qiagen must be clear. As such, $20M-$25M in 2Q and 3Q is quite a large amount of tests sold by CDI. Recall, this company was just in the early stages of commercialization with its ID-focused tests in India with CoSara, early stage in Agro with LGC, and so on; <$1M in revenue a year. This was pre-COVID, in just 6 months that number is over $40M for COVID alone, and it is profitable.”

Disclosure: Co-Diagnostics Inc is a client of BDA International.

About BDA International, Inc.:

BDA International is an independent global Investor Relations firm offering a wide range of IR-related analysis, research and advisory services. In particular, we provide and are compensated for service packages that include strategic action plans and investor/market perception studies to help entities improve communication with customers and investors, and to increase their visibility. BDA International has received no direct compensation related to this release but its principles hold shares of client companies in our personal portfolios, including CODX. BDA International accepts sole responsibility for the content and distribution of the foregoing release, which does not contain any previously unpublished or non-public information. Parties interested in learning more about the relationship between BDA and CODX may do so via the contact information at the bottom of this release.


The information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained in this analysis reflect our current judgment and are subject to change without notice. We do not accept any responsibility or liability for any losses, damages or costs arising from an investor’s or other person’s reliance on or use of this analysis. This analysis is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities, nor a recommendation of any security, although members of the BDA may at times hold a position in the company covered within the article. Co-Diagnostics is a client of BDA International. Past gains are not a representative of future gains. The opinions herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plans,” “should,” “potential,” “forecast,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. A company’s actual results could differ materially from those described in any forward-looking statements contained herein. BDA is not a licensed broker, broker dealer, market maker, investment advisor, analyst or underwriter. We recommend that you use the information found herein as an initial starting point for conducting your own research in order to determine your own personal opinion of the companies discussed herein before deciding whether or not to invest. You should seek such investment, tax, financial, accounting or legal advice appropriate for your particular circumstances. Information about many publicly traded companies and other investor resources can be found at Investing in securities is speculative and carries risk.

Investor Relations Contact:
Mushtaq Dost                                                                      
BDA International