TOMI Environmental Solutions (TOMZ – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Amit Dayal from H.C. Wainwright maintained a Buy rating on the stock and has a $3.50 price target.
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Amit Dayal’s rating is based on the potential for TOMI Environmental Solutions to achieve significant revenue growth in the coming years. Despite a challenging fourth quarter in 2024, marked by a decline in net revenue and negative gross margins, the company has a robust pipeline of sales opportunities. These include numerous special and custom projects, both domestically and internationally, which could drive substantial year-over-year revenue growth in 2025.
Amit Dayal believes that the company’s business model, particularly the razor/razor blade approach, is proving effective as solution revenues are increasing rapidly. Additionally, the expansion of distribution channels in the U.S. and abroad is expected to support future sales growth. The analyst projects a strong compound annual growth rate in revenues over the next decade, supported by a well-understood value proposition of the company’s SteraMist products. Despite some risks, including potential dilution and global supply-chain issues, the long-term growth prospects and strategic positioning of TOMI Environmental Solutions justify a Buy rating.
TOMZ’s price has also changed moderately for the past six months – from $0.731 to $0.819, which is a 12.04% increase.