Co-Diagnostics gets price target boost from HC Wainwright on 1Q coronavirus test revenue; shares rise

Co-Diagnostics Inc (NASDAQ:CODX) shares ticked higher to start the week after analysts at HC Wainwright & Co bumped up its price target for the company to $35 per share from $20 on strong first-quarter results.  The company’s $1.5 million in first-quarter revenue, driven largely by sales of its Logix Smart COVID-19 test, beat HC Wainwright’s expectations of $1.1 million.  Shares of the company climbed 2.3% to $17.46. READ: Co-Diagnostics CEO says company profitable on strong demand for its coronavirus diagnostic test Co-Diagnostics has manufactured more than 6 million tests to date, the firm noted, and ordered the components for 20 million more. That represents $100 million worth of tests that are expected to ship over the coming months.  That’s going to drive second-quarter revenue, which Co-Diagnostics disclosed was up to $16.5 million through May — already more than double HC Wainwright’s projection of $6.6 million. The firm revised its second-quarter revenue estimate to $27 million and its full-year estimate to $83.5 million, up from $37.1 million. That would likely mean a significant milestone for the Salt Lake City-based based company: profitability. “We project that 2020 would be a profitable year for Co-Diagnostics,” HC Wainwright wrote. “We believe the growth in testing revenue could be driven by the need to test asymptomatic populations in order to allow those people to go back to work as the world’s economies reopen, as well as symptomatic subjects in hospitals. In addition, a potential second wave of COVID-19 in the coming fall/winter season may demand testing throughout the year into 2021.” The Logix Smart test has been independently verified multiple times, the firm noted, but competition could increase if the Food and Drug Administration grants additional Emergency Use Authorizations to other tests.  That said, Co-Diagnostics is working to develop additional tests: a multiplex panel to differentiate between the COVID-19 virus and other upper respiratory pathogens as well as a test for the D614G mutation in SARS-CoV-2, which has become the most common strain in the US. SARS-CoV-2 is the virus that causes the disease COVID-19. Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com Follow him on Twitter @andrew_kessel