Co-Diagnostics Faces Financial Challenges and Strategic Adjustments Amid Regulatory Setbacks

In a report released today, Yi Chen from H.C. Wainwright reiterated a Hold rating on Co-Diagnostics (CODX – Research Report), with a price target of $1.00.

Yi Chen has given his Hold rating due to a combination of factors influencing Co-Diagnostics’ current financial and operational status. The company reported a significant net loss of $37.6 million for 2024, with a notable year-over-year revenue decline of 43%. This financial performance, coupled with the withdrawal of their 510(k) application for the Co-Dx PCR COVID-19 test, reflects challenges in their product pipeline and regulatory processes.
Despite these setbacks, Co-Diagnostics is making strategic moves to improve its future prospects, such as planning to resubmit a revised version of their COVID-19 test for FDA clearance and expanding their manufacturing capabilities. However, the company’s cash position is concerning, with a potential need to raise additional capital within the next year. These factors, combined with a reduced price target of $1 due to a higher number of shares outstanding, underpin Yi Chen’s decision to maintain a Neutral stance on the stock.