Co-Diagnostics got a strong-buy rating. Why is that?

Co-Diagnostics got a strong-buy rating. Why is that?

Most medical stocks were more or less spared during the coronavirus pandemic when so many other futures suffered great losses. Some of them even gained significant amounts.

According to analysts, Co-Diagnostics is one of those companies which has a great potential for gain. This firm is trying to bring high-quality molecular diagnostics for infectious diseases to market. To achieve this goal, the company uses a unique technology that enables more affordable testing, research, and design solutions.

Currently, Co-Diagnostics is working on the Logix Smart COVID-19 test. This project attracted Wall Street’s attention. H.C. Wainwright’s analyst, Yi Chen, stated that he is sufficiently impressed by the company.

In May, Co-Diagnostics announced that its product had been able to find SARS-CoV-2 in formalin-fixed paraffin-embedded samples from a surgical resection of tongue squamous cell carcinoma in a patient who was infected by COVID-19 after surgery.

According to the analyst, the firm detected RNA of the SARS-CoV-2 strain in the tumor and the normal submandibular gland samples using the Logix Smart COVID-19 real-time PCR test. However, they couldn’t find viral RNA in metastatic and reactive lymph nodes.

What does Co-Diagnostics’ discovery mean?

It seems the company can detect SARS-CoV-2 RNA in routine histopathological samples before COVID-19 disease development. That is good news, as such a test will be beneficial for employers worldwide, who are planning to test asymptomatic employees before allowing them to return to the workplace.

The test’s impressive capabilities attest to the strength of Co-Diagnostics’ CoPrimer technology. But it’s not all. The company is also developing additional tests to address the other obstacles in the diagnosis of coronavirus.

A multiplex panel will be in use to distinguish between the other upper respiratory pathogens and the COVID-19 virus, along with a test using CoPrimers to identify both coronavirus and the antibody associated with a past infection in one test.

Co-Diagnostics has sold more than $100 million worth of tests since mid-May. Chen believes that the company will continue gaining. He sat a $35 price target on the stock with a 103% upside potential. However, the average price target implies the potential twelve-month gain of 95% at $33.67.

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