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H.C. Wainwright Reiterates Buy on Co-Diagnostics
(NASDAQ:CODX) with a $20 PT as Shipments to U.S and
Overseas Markets Continue

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NEW YORK CITY, March 10, 2020 (GLOBE NEWSWIRE) — H.C. Wainwright analyst Yi Chen released additional coverage on Co-Diagnostics (NASDAQ:CODX), a Utah-based molecular diagnostics company, raising the firm’s price target to $20 and keeping a Buy rating on the shares. Co-Diagnostics was the first U.S. company to receive CE Marking designation for a COVID-19 test, Chen tells investors in a research note. The analyst believes a recent FDA policy change to help expedite the availability of COVID-19 coronavirus diagnostics could be a significant boost to the company’s potential sales of its COVID-19 test domestically.

Co-Diagnostics is now shipping its proprietary COVID-19 test to countries across four continents, including America, Europe, Asia and Australia, said the analysts, adding “the domestic and international demand for COVID-19 tests has been surging in the past weeks.”

The company has been seeing an increase in product shipments of its Logix Smart COVID-19 screening test following the US Food and Drug Administration’s decision late last month to allow labs that meet a set of standards known as the Clinical Laboratory Improvement Amendments (CLIA) to use coronavirus detection tests that have been validated by the laboratories, even before the FDA has completed the review of the labs’ Emergency Use Authorization (EUA) submission.

Previously, labs seeking to use coronavirus tests had to wait for specific clearance from the FDA.

This recent activity coincides with the company completing a registered direct offering of 470K shares at $9 per share for gross proceeds of $4.2M, which leads the analyst to estimate that the company’s pro forma cash position post offering could approximate $24M, which should fund operations for the next three years.

According to the Wainwright analyst:

“In view of the continuing—and rapidly accelerating—COVID-19 infection spread worldwide and initialization of shipments to U.S. labs, we have increased the enterprise value-to-sales (EV/Sales) multiple to 12x from 10x and projected 2020 total sales to $1.66 from $0.40 per share, which leads to a value of $20 per share. Therefore, we reiterate our Buy rating while raising the 12-month target to $20 from $4 per share.”

The full research report can be accessed here.

Disclosure: Co-Diagnostics Inc is a client of BDA International.

About BDA International, Inc.:

BDA International is an independent global Investor Relations firm offering a wide range of IR-related analysis, research and advisory services. In particular, we provide and are compensated for service packages that include strategic action plans and investor/market perception studies to help entities improve communication with customers and investors, and to increase their visibility. BDA International has received no direct compensation related to this release but its principles hold shares of client companies in our personal portfolios, including CODX. BDA International accepts sole responsibility for the content and distribution of the foregoing release, which does not contain any previously unpublished or non-public information. Parties interested in learning more about the relationship between BDA and CODX may do so via the contact information at the bottom of this release.

Disclaimer

The information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained in this analysis reflect our current judgment and are subject to change without notice. We do not accept any responsibility or liability for any losses, damages or costs arising from an investor’s or other person’s reliance on or use of this analysis. This analysis is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities, nor a recommendation of any security, although members of the BDA may at times hold a position in the company covered within the article. Co-Diagnostics is a client of BDA International. Past gains are not a representative of future gains. The opinions herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plans,” “should,” “potential,” “forecast,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. A company’s actual results could differ materially from those described in any forward-looking statements contained herein. BDA is not a licensed broker, broker dealer, market maker, investment advisor, analyst or underwriter. We recommend that you use the information found herein as an initial starting point for conducting your own research in order to determine your own personal opinion of the companies discussed herein before deciding whether or not to invest. You should seek such investment, tax, financial, accounting or legal advice appropriate for your particular circumstances. Information about many publicly traded companies and other investor resources can be found at www.sec.gov. Investing in securities is speculative and carries risk.

Investor Relations Contact:
Mushtaq Dost
BDA International
www.bda-ir.com
dost@bda-ir.com

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