Co-Diagnostics Inc (CODX)

[Opti Mist]

Co-Diagnostics cut to hold at Maxim questioning COVID-19 testing outlook
Mar. 29, 2021 1:02 PM ETCo-Diagnostics, Inc. (CODX)By: Dulan Lokuwithana, SA News Editor7 Comments
The analyst concerns over COVID-19 test makers continue as Maxim Group downgraded Co-Diagnostics (CODX -9.1%) to hold from buy arguing that the stock already reflects whatever the COVID-related benefit as the vaccinations blunt the impact.
The company’s Q4 2020 revenue which was ahead of expectation was 24% higher than the previous quarter, the analysts Jason McCarthy and Michael Okunewitch wrote.
After a steep rally in 2020, the analysts argue that the stock has priced in the COVID-related opportunity and the ensuing revenue growth, which, according to them, has likely peaked.
Citing the current backdrop of the pandemic, ‘we do not expect revenue to reach the level observed in 2020, at least not based on the current COVID environment,’ they conclude removing the stock’s price target.
In February, COVID-19 leveraged test makers slumped after Quidel failed to meet the consensus revenue estimates for Q4 2020.