H.C. Wainwright reiterates Buy on TOMI Environmental stock

H.C. Wainwright maintains a positive outlook on TOMI Environmental Solutions (NASDAQ:TOMZ), maintaining its "Buy" rating and a price target of $7.00, indicating a substantial potential upside of nearly 293% from the current stock price of $1.78. In their latest analysis, the investment firm highlighted a significant 118% year-over-year revenue growth for TOMI, reaching $2.2 million in Q2 2026, up from $1.0 million.

The company's service revenue also saw a slight increase of 3% to $0.4 million. However, gross profit margins have improved from 50.3% in Q1 2026 to 61.7% in Q2 2026, though they still remain below the 65.7% margin achieved a year ago. The company's management has been disciplined in controlling expenses, leading to a 10% reduction in total operating expenses to $1.6 million, which narrowed the operating loss to $244,000 from $1.1 million.

Despite the improved gross margins, InvestingPro noted that the company's profitability challenges persist, reflected in the last twelve months gross profit margin of 52.89%. The stock appears to be overvalued according to the Fair Value analysis. Investors interested in a comprehensive understanding of TOMZ's prospects can refer to the company's Pro Research Report, among the 1,400+ reports available on the InvestingPro platform.

As of the end of the reported quarter, TOMI had $322,000 in cash on hand. Analyst Amit Dayal from H.C. Wainwright has reaffirmed his Buy rating and the $7 target price for TOMI Environmental Solutions stock.