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.”
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.
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