CHICAGO, IL / ACCESSWIRE / February 21, 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 Taglich Brothers, Inc. ("Taglich Brothers") published its first coverage report on the Company's common stock.
The report, published on February 20, 2024, by analyst Howard Halpern, assigned a Speculative Buy rating and set a 12-month price target of $4.00 per share, compared to the share price of $0.83 at the time of publication.
A summary is available in the Taglich Brothers website section dedicated to Cosmos Health, and the detailed report can be accessed here.
Greg Siokas, Chief Executive Officer of Cosmos Health, stated: "We are pleased that Taglich Brothers has published its inaugural coverage report on our common stock. As I have consistently stated, I believe our common stock is undervalued, given our accomplishments and growth prospects. In line with this, it's gratifying to see Taglich Brothers set a price target nearly 5 times higher than our current share price, underscoring the very reason I am also buying shares in the open market. We hope for even greater analyst coverage over time, which should further elevate awareness and highlight the intrinsic value of Cosmos."
Key highlights of the Taglich Brothers coverage report include:
- Price target of $4.00 per share implying the share price could increase nearly five-fold over the next twelve months.
- Tangible book value per share of $3.09, nearly four times higher than the current share price, suggesting a Price-to-Book ratio of 0.27X.
- Substantial growth is anticipated due to the Company's evolution into a vertically integrated global health organization.
- FY 2024 revenue is expected to reach $64 million, approximately 25% higher than FY 2022A and FY 2023E, reflecting, among others, the benefits from a full year's contribution from Cana Laboratories ('Cana') and sales from the Company's recently acquired portfolio of generic drugs.
- Trailing Price-to-Sales multiple of 0.2X is significantly below the average price-to-sales multiple of 2.2X for companies in the medical distribution and drug manufacturing sectors.
- Applying a price-to-sales multiple of 1.4X to the 2024 sales per share forecast of $3.50, and accounting for execution risks and potential dilution from the exercise of warrants, results in a year-ahead price target of approximately $4.00 per share.
- Valuation is expected to improve as Cosmos Health reports revenue growth, narrows operating losses, reduces cash burn, and improves adjusted EBITDA.
- The full-year loss per share is anticipated to decrease significantly due to substantial operating leverage from synergies with Cana and the associated increase in pharmaceutical production.
- Moving beyond 2024, significant growth is anticipated from Cana, with the potential to contribute at least $30 million of additional revenue by 2025 through the relaunch of its proprietary products, contract manufacturing services, production of new internally developed products, as well as the launch of a generic diabetes drug in Europe.
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Chicago, Illinois, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life®, Mediterranation®, bio-bebe® and C-Sept®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency, it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.cana.gr, and www.zipdoctor.co, as well as LinkedIn and X.
Forward-Looking Statements
With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could", are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic and the war in Ukraine, on the Company's business, operations and the economy in general, and the Company's ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Disclaimer
All research issued by Taglich Brothers is based on public information. The Company does not undertake the responsibility to advise you of changes in figures or in their views. The Company pays a fee of $3,000 per month for 12 months for research coverage, which includes the creation and dissemination of research reports. This is not a solicitation of any order to buy or sell. Taglich Brothers, fully disclosed with its clearing firm, Axos Clearing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. There is no guarantee that the target price for the stock will be met or that the predicted business results for the Company will occur. There may be instances when fundamental, technical, and quantitative opinions contained in Taglich Brothers' reports are not in concert. Taglich Brothers does not currently have an Investment Banking relationship with the Company and was not a manager or co-manager of any offering for the Company within the last three years.
Investor Relations Contact:
BDG Communications
cosm@bdgcommunications.com
+44 207 0971 653
SOURCE: Cosmos Health Inc.
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