Co-Diagnostics’ COVID-19 Test Passes Clinical Evaluation; Analyst Reiterates Buy

TipRanks BlogTipRanks BlogMarch 26, 2020

It might be churlish to suggest there are winners in times of a global pandemic, but it is an unavoidable fact that some companies have benefited from the outbreak. Companies searching for vaccines and those selling hand sanitizer, along with companies with less pertinent issues on their hands, but which fulfill current public stay at home needs are among those to have gained. But none more so than Co-Diagnostics (CODX), a micro-cap healthcare company that has developed a test for the diagnosis of coronavirus. As companies’ valuations have tumbled mercilessly since the outbreak began, CODX shares have soared in the opposite direction. The stock is up by an incredible 919% year-to-date. 

On March 20, the company announced that, as required for FDA Emergency Use Authorization (EUA), its Logix Smart COVID-19 test had successfully completed its clinical evaluation. The test exhibited 100% sensitivity along with 100% specificity in detecting SARS-CoV-2 (COVID-19), and indicated no cross-reactivity with other coronaviruses. In addition to the thousands of laboratories that can now run the company’s test as a clinical diagnostic, the company will immediately begin fulfilling orders from a large number of US customers. 

Along with the US, the test has already been shipped to countries across five continents including heavily hit Italy, as well as Germany, the UK, Turkey, Thailand, Australia, Paraguay, Israel, and Canada, amongst others. 

H.C. Wainwright’s Yi Chen is encouraged by the test’s “excellent accuracy” and noted, “As the coronavirus spread continues around the world, we expect that Co-Diagnostics’ prompt, accurate and cost-effective testing product should remain its primary top-line growth driver in the near term… In our view, the company is now able to serve the urgent need for rapid and accurate COVID-19 testing in the US, which has been lagging other developed countries on the testing front; the volume of tests shipped to domestic labs should ramp up in the immediate-term.” 

It’s no surprise to learn that Chen reiterated a Buy rating on CODX and kept his price target at $20. The implication for investors? Further upside in the shape of 121% could be in store. (To watch Chen’s track record, click here

Based on one other Hold rating published in the last three months, Co-Diagnostics currently has a Moderate Buy consensus rating. The average price target comes in identical to Chen’s at $20. (See Co-Diagnostics stock analysis on TipRanks

The post Co-Diagnostics’ COVID-19 Test Passes Clinical Evaluation; Analyst Reiterates Buy appeared first on TipRanks Financial Blog.

Source: TipRanks Blog

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