Shares of Omega Diagnostics Group Plc (LON: ODX) fell 3.55% today extending the downtrend that has been in place since hitting new all-time highs on 7th October after the British government orders 1 million coronavirus tests.
Most analysts claim that Omega shares are overvalued given that they are up 592% this year as questions linger about the firm’s market share in the COVID-19 testing industry amid rising global competition.
Omega expects to manufacture at least 175,000 of the 1 million tests ordered by the government from the rapid test consortium of which it is a member. The company also plans to produce up to 200,000 tests per week starting in November, which could generate revenues of up to £5.7 million during its 2021 fiscal year.
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It’s hard to predict the future demand for coronavirus tests given that there is no precedence for the pandemic, hence, we cannot say for sure if Omega is a great investment at current prices or not.
Regardless, the diagnostics company is one of the best performing UK stocks attracting a lot of attention from investors, which makes it a stock to watch going forward.
Omega Diagnostics share price
Omega Diagnostics shares today fell 3.55% to trade at 95.0p having fallen from Tuesday’s closing price of 98.5p.
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