Buy Rating Affirmed for TOMI Environmental Solutions with a Robust Long-Term Revenue Outlook

H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on TOMI Environmental Solutions (TOMZ – Research Report) today and set a price target of $3.50.

Amit Dayal’s rating is based on the optimistic long-term outlook for TOMI Environmental Solutions, despite the company’s recent lumpy revenue performance. In his analysis, Dayal acknowledges the near-term variability in sales but sees potential in the company’s growing pipeline of opportunities and its razor/razor-blade business model. The expected sale of SteraMist Environment Systems to the Department of Homeland Security and a potential grant from the Department of Defense support the belief in the company’s future growth. Additionally, the recurring revenue from deployed systems and the iHP Service is anticipated to contribute significantly to margins in the future.
Maintaining a Buy rating, Dayal projects a substantial increase in revenues for TOMI over the next decade, with a compound annual growth rate of 20%. The anticipated improvement in gross margins and a controlled increase in operating expenses further affirm the positive outlook. Dayal’s $3.50 price target for TOMI’s stock is grounded in a discounted cash flow analysis, reflecting confidence in the company’s valuation and revenue projections for 2025. Despite the inherent risks such as dilution, supply-chain delays, and market competition, the financial prospects appear strong enough to merit the Buy recommendation.

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TOMI Environmental Solutions (TOMZ) Company Description:

TOMI Environmental Solutions, Inc. engages in the provision of disinfection and decontamination essentials under the brand name SteraMist. It operates through the following division: Hospital-HealthCare, Life Sciences, TOMI Service Network, and Food Safety. The company was founded by Halden S. Shane on September 18, 1979 and is headquartered in Beverly Hills, CA.