Co-Diagnostics earns Buy rating, $5 price target from Maxim after releasing coronavirus test

Analysts at Maxim more than doubled the company's price after sales of its coronavirus test began in China

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Maxim tagged the company with a Buy rating and increased its price target to $5

Co-Diagnostics Inc (NASDAQ:CODX) has caught the eye of analysts at Maxim Group as it moves ahead with its coronavirus diagnostic test. 

Maxim tagged the company with a Buy rating and increased its price target to $5 from $2, citing the speed at which Co-Diagnostics developed a detection test for the virus and its subsequent first sales in China.

“[The speed of development] highlights not just the platform's versatility, but also CDI's ability to produce tests in a time efficient manner as future threats emerge,” Maxim wrote. “We saw this with the Zika test and other viral tests from CDI.”

READ: Co-Diagnostics makes coronavirus diagnostic test available to researchers

The firm also noted Co-Diagnostics’ viral testing manufacturing facilities in India through its joint venture with CoSara Diagnostics.

Additionally, the Utah-based company recently boosted its balance sheet, raising roughly $15 million in two equity financings in January. The move “extended the company’s cash runway well into 2021, positioning it to unlock value in its commercial-stage infectious diseases testing platform.”

“We factor in dilution, roll our metrics forward to 2020, and lower the risk adjustment in our commercial model to 30%, from 75%,” Maxim wrote. “The net result raises our 12-month price target to $5 from $2.”

The coronavirus has killed at least 1,873 people and infected more than 72,000, according to CNN.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: Co-Diagnostics

Price: 8.7 USD

Market: NASDAQ
Market Cap: $238.72 m


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