2023-03-20 15:16:50 ET
Co-Diagnostics ( NASDAQ: CODX ) extended the selloff for the second straight session on Monday as H.C. Wainwright downgraded the COVID-19 test maker and halved its price target, citing lower-than-expected Q4 results.
The analyst Yi Chen notes that CODX's Q4 revenue declined 93% YoY to $1.4M, falling short of the firm's forecast of $5.5M, while its management attributed the contraction to lower demand for the Logix Smart COVID-19 tests globally.
"Given our observation in the diagnostics sector, we believe the market demand for COVID testing may continue to diminish in the coming quarters," Chen added, downgrading Co-Diagnostics ( CODX ) to Neutral from Buy and slashing its price target to $3 from $6 per share.
The analyst issues positive comments on the company's Co-Dx PCR Home device yet cites uncertainty on the timing of its market rollout. Chen argues that its initial COVID test on this platform is unlikely to help CODX to resume its topline growth in the near term.
Seeking Alpha contributor Tomas Andrade Campanini issued a Hold rating on CODX in January, arguing that the company's cash reserves, a key element in its bullish narrative, are not easily accessible for a minority investor.
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Co-Diagnostics hits 52-week low as H.C. Wainwright cuts rating