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Genedrive Shares Are Down 57% From Their Feb. Highs, Is Now a Good Time to Buy?

Simon Mugo trader
Updated 30 Mar 2021

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Shares of molecular diagnostics company Genedrive PLC  (LON: GDR) are down 57% from their mid-February highs of 163p to their current trading price. Many investors are wondering whether now is a good time to buy.

Based on the company’s H1 earnings results and forward guidance, it is evident that the management team expects to have a stellar H2, which could fuel another rally. Bullish investors may find the current price very attractive from a long-term perspective.

Genedrive announced a significant shift in its business strategy towards developed countries with differentiated markets and product cycles with predictable revenue targets that could deliver excellent results in H2.

The company has several lucrative partnerships that could deliver significant contract wins in H2, such as its partnership with Mountain Horse solutions that could see it win US military contracts in future.

Genedrive is could also generate significant revenues from its partnership with Beckman Coulter, which will distribute its high-throughput Covid-19 PCR kit in the United States and Europe using upper respiratory viral samples.

Beckman Coulter’s deal seeks to capitalise on the ongoing COVID-19 testing needs as the global vaccination campaigns continue and countries start relaxing lockdown restrictions, which is likely to trigger a surge in global travel.

Genedrive’s current fundamentals point to excellent performance in the second half of its financial year and investors. The company’s shares are trading at an attractive valuation, given its positive prospects.

Genedrive share price.

Ig chart of Genedrive share price 30-03-2021

Genedrive shares are down 57% from their February high of 163p to their current trading price of 70p. Is now a good time to buy?

Should you invest in Genedrive shares?

Genedrive shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Genedrive shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading