Co-Diagnostics earns Buy rating, $5 price target from Maxim after releasing coronavirus test

Co-Diagnostics Inc (NASDAQ:CODX) has caught the eye of analysts at Maxim Group as it moves ahead with its coronavirus diagnostic test.  Maxim tagged the company with a Buy rating and increased its price target to $5 from $2, citing the speed at which Co-Diagnostics developed a detection test for the virus and its subsequent first sales in China. “[The speed of development] highlights not just the platform's versatility, but also CDI's ability to produce tests in a time efficient manner as future threats emerge,” Maxim wrote. “We saw this with the Zika test and other viral tests from CDI.” READ: Co-Diagnostics makes coronavirus diagnostic test available to researchers The firm also noted Co-Diagnostics’ viral testing manufacturing facilities in India through its joint venture with CoSara Diagnostics. Additionally, the Utah-based company recently boosted its balance sheet, raising roughly $15 million in two equity financings in January. The move “extended the company’s cash runway well into 2021, positioning it to unlock value in its commercial-stage infectious diseases testing platform.” “We factor in dilution, roll our metrics forward to 2020, and lower the risk adjustment in our commercial model to 30%, from 75%,” Maxim wrote. “The net result raises our 12-month price target to $5 from $2.” The coronavirus has killed at least 1,873 people and infected more than 72,000, according to CNN. Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com  Follow him on Twitter @andrew_kessel