Benchmark Co. Reiterates a Buy Rating on Chembio Diagnostics

By Jason Carr

In a report released today, Raymond Myers from Benchmark Co. reiterated a Buy rating on Chembio Diagnostics (NASDAQ: CEMI), with a price target of $9. The company’s shares opened today at $6.70.

Myers wrote:

“We model Zika related revenue of approximately $1.0 million in Q4, and $6.0 million in 2017. We anticipate Zika sales under CE Mark currently, plus Brazil sales very soon, once the Microreader achieves local INCQS regulatory clearance. We look forward to Management’s participation in Benchmark’s annual Chicago MicroCap conference on December 1.”

According to TipRanks.com, Myers is a 2-star analyst with an average return of 1.8% and a 37.5% success rate. Myers covers the Healthcare sector, focusing on stocks such as Staar Surgical Company, Foundation Medicine, and Natus Medical Inc.

Chembio Diagnostics has an analyst consensus of Moderate Buy.

Based on Chembio Diagnostics’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $3.75 million and GAAP net loss of $2.14 million. In comparison, last year the company earned revenue of $6.89 million and had a GAAP net loss of $437.2K.

Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CEMI in relation to earlier this year. Most recently, in September 2016, Peter Kissinger, a Director at CEMI bought 46,875 shares for a total of $80,094.

Chembio Diagnostics, Inc. develops, manufactures, markets and licenses rapid point-of-care diagnostic tests that detect infectious diseases. Its main products presently commercially available are four rapid tests for the detection of HIV antibodies. It sells its products under its STAT PAK, SURE CHECK, DPP and SampleTainer trademarks. The company was founded on May 5, 2004 and is headquartered in Medford, NY.