Taglich Brothers Publishes Updated Coverage Report on Cosmos Health; Maintains Price Target of $4, Nearly 300% Above Current Share Price
CHICAGO, IL / ACCESSWIRE / September 17, 2024 / Cosmos Health Inc. ("Cosmos Health" or the "Company'') (NASDAQ:COSM), a diversified, vertically integrated global healthcare group engaged in innovative R&D, owner of proprietary pharmaceutical and …
CHICAGO, IL / ACCESSWIRE / September 17, 2024 / Cosmos Health Inc. ("Cosmos Health" or the "Company'') (NASDAQ:COSM), a diversified, vertically integrated global healthcare group engaged in innovative R&D, owner of proprietary pharmaceutical and nutraceutical brands, manufacturer and distributor of healthcare products, and operator of a telehealth platform, announced today that on September 16, 2024, Taglich Brothers, Inc. ("Taglich Brothers") published its updated research report on the Company's common stock.
Key highlights of Taglich Brothers' updated coverage report include:
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Maintains Speculative Buy rating with a $4 price target, implying a nearly four-fold share price increase over the next 12 months.
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Significant growth is expected as the Company transitions into a vertically integrated global health organization, driven by increased contract manufacturing at Cana Laboratories and expanded distribution agreements for its nutraceutical and disinfectant brands in Europe and the Middle East.
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FY 2024 revenue is forecasted at $56.3 million, with a 22.6% increase to $69.0 million in FY 2025, alongside a projected operating profit of $20,000 and cash earnings of $1.6 million.
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Valuation should improve with revenue growth, transitioning to operating profit and positive cash earnings, as Cosmos Health's price-to-sales multiple (0.3X) lags behind the 2.4X sector average for similar companies in medical distribution and drug manufacturing.
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Investors are likely to assign a valuation multiple closer to industry standards. Applying a 1.4X price-to-sales multiple to the 2025 sales per share forecast of $3.86 supports the $4 price target, factoring in execution risks and potential warrant dilution.
Greg Siokas, CEO of Cosmos Health, stated: "I am pleased that Taglich Brothers has reaffirmed its price target of $4-nearly four times our current share price. Taglich highlights strong growth potential driven by, among other factors, our strategic investments in Cana, including new contract manufacturing agreements, and the expansion of our proprietary brands globally. In fact, Taglich expects Cosmos to be cash flow positive in 2025. As I've consistently emphasized, I believe our stock remains undervalued given our achievements and growth outlook, and I'm encouraged to see that Taglich shares this view."