Bull Of The Day: Meridian Bioscience, Inc.

Mah had conservatively modeled only $500,000 in COVID-19 revenue in the current quarter and $5 million total for fiscal 2021, so his estimates were not greatly affected by the slight downward revisions he thinks he might have to make after this quarter. Mah still expects that COVID-19 testing will be a durable revenue source through 2022.

On February 24, another positive analyst, Yi Chen from H.C. Wainwright, lowered the firm's price target on VIVO to $32 from $34 while reiterating a Buy rating on the shares after the FDA requested additional studies for Revogene EUA resubmission. Chen acknowledged that this temporary setback in EUA application and the commercial launch of Revogene SARS-CoV-2 molecular assay may delay the resumption of growth in the Diagnostics segment.

But, with shares falling back to $21, the analyst felt that overall growth rates in the combined business segments justified a higher valuation for such a small player trading at only 3 times sales.

Ready for Bargains During Corrections

I wrote about VIVO in early January and said it wasn't too late for investors to grab hold of this profit rocket near $20 per share...

"Bottom line on VIVO: I always pay attention to small companies growing their sales rapidly as they could become acquisition targets by larger biopharma or MedTech players. Buying VIVO near $20 offers excellent risk/reward, with or without an M&A suitor."

And then in early Feb, right before the company report, I produced a video and article where I talked about why the COVID-19 testing stocks were under-appreciated given their fantastic growth...

Biotech Bonanza: COVID Launches Science at Warp Speed

Well, we just got another shot at $20 so I hope you were paying better attention than me! Looks like I made this recent vlog more for myself than anyone else...

Meridian Under the Microscope

Meridian Bioscience develops, manufactures, distributes, and sells diagnostic test kits primarily for gastrointestinal and respiratory infectious diseases, and elevated blood lead levels worldwide. The company operates through Diagnostics and Life Science segments. They describe their mission as helping providers make better diagnostic decisions with a focus on gastrointestinal, neonatal, pediatrics, and respiratory conditions.

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Disclosure: I own shares of QDEL, HOLX, NVAX and VIVO for the Zacks Healthcare Innovators portfolio.

Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the more

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Adam Reynolds 1 month ago Member's comment

What about $QDEL?