Cosmos Health Announces Initiation of Analyst Coverage with $4.50 Valuation by Zacks Small-Cap Research

Core Viewpoint - Zacks Small-Cap Research has initiated coverage on Cosmos Health Inc. with a valuation of $4.50 per share, highlighting the company's diversified revenue base and improving financial performance as key factors supporting this valuation [1][2][3]. Valuation Methodology - The valuation is based on a five-year discounted cash flow (DCF) analysis using a 20% discount rate, reflecting the company's small-cap profile and execution risk, with assumptions of moderate near-term revenue growth and a 2% terminal growth rate [4]. Revenue Growth Outlook - Cosmos Health's revenues are projected to grow from approximately $64.4 million in 2025 to $98.6 million in 2026, and further to over $130 million by 2027, driven by higher-margin pharmaceutical products and technology-enabled services [5]. Vertically Integrated Healthcare Platform - The company operates a vertically integrated model that includes pharmaceutical distribution, GDP-compliant wholesale operations, GMP-certified manufacturing, proprietary nutraceutical brands, telehealth services, and AI-enabled R&D [6]. U.S. Market Entry - Cosmos Health is expanding into the U.S. market, highlighted by the acquisition of ZipDoctor, a telehealth subscription platform, and the launch of Sky Premium Life in the U.S. nutraceutical market [7]. Advancing R&D Pipeline - The company is advancing its R&D programs, including CCX0722 for obesity and weight management, and other compounds targeting multiple sclerosis and oncology-related indications [8]. AI-Driven Innovation - The acquisition of Cloudscreen, an AI-enabled drug repurposing platform, is identified as a key technology supporting Cosmos Health's R&D activities, aimed at shortening development timelines and reducing costs [9]. Digital Assets and Blockchain Strategy - Cosmos Health has implemented a digital asset allocation program, including the purchase of Ethereum (ETH), supported by a financing facility of up to $300 million, and has partnered with Prime Ledger LLC for managing digital assets [10]. Improving Financial Performance - The company reported a record third quarter in 2025, with double-digit year-over-year revenue growth, significantly higher gross profit, and improved adjusted EBITDA, reflecting operational execution and a shift toward higher-margin activities [11].