Atossa Genetics Inc (NASDAQ:ATOS): This Stock May Be Undervalued

Atossa Genetics Inc (NASDAQ:ATOS) was recently the subject of a bullish review by analysts at Zacks. In a report, Zacks Investment Research painted a positive picture of Atossa, especially citing how the stock is undervalued and what that means for the investors.

Why is momentum shifting in ATOS?  Read this analyst breakdown.

Revenue and profit gains

The highlights of Zacks report on Atossa Genetics Inc (NASDAQ:ATOS) hinted on the potential top and bottom line gains in the company. Such gains also mean improvement in shareholder value. As concerns top line growth, Zacks noted that Atossa was poised to witness 230% increase in revenue over the next six year. On the aspect of profits, the report stated that Atossa could become profitable by 2019.

Positive indicators

According to analyst Grant Zeng of Zacks, there are a number of positive indicators in Atossa that make them optimistic about the future of the company. Such indicators include a rapidly growing market for the company’s products. Additionally, the company also boasts a wide range of products and unique technology, which position it well for big top and bottom line growth.

The fact that Atossa Genetics Inc (NASDAQ:ATOS) found a way to get over the FDA challenge over its breast cancer test known as ForeCyte Breast Aspirator also inspires hope for growth. The company said it was determined to tap revenue in the U.S. through a version of its breast cancer test known as FullCyte Breast Aspirator. Additionally, the company secured approval in Europe to market its best cancer test there.

Commenting on the FDA decision and the potential impact on the company, CEO, Steve Quay, said they hoped that the alternative cancer test would help them meet their commercialization goal in the U.S. without major delays.

Plans for bigger R&D spending

Atossa Genetics Inc (NASDAQ:ATOS) recently highlighted plans to increase spending on research and development to continue the development of new products and services. Additionally, the company expects to hire more personnel to help with the launch of its existing products and those currently under development.

The company reported $3,000 in revenue in the most recent quarter. It had cash and equivalents of $11.3 million at the end of the most recent quarter.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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