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

Rhea-AI Summary

Cosmos Health (NASDAQ:COSM) announced that Zacks Small-Cap Research initiated coverage on January 13, 2026, assigning a $4.50 per share valuation based on a five-year DCF using a 20% discount rate and a 2% terminal growth rate. Zacks projects revenue growth from $64.4M in 2025 to $98.6M in 2026 and to over $130M in 2027, driven by higher-margin pharmaceuticals, nutraceutical brands, telehealth, and Cloudscreen AI-enabled R&D. The report cites Cosmos Health’s U.S. expansion (ZipDoctor, Sky Premium Life), a disclosed $300M financing facility, ETH purchases, and record Q3 2025 revenue and improved adjusted EBITDA as supporting factors. Cosmos disclosed it paid Zacks for the report.

Positive

• Projected revenue +53% from $64.4M (2025) to $98.6M (2026)
• Projected revenue > $130M by 2027
• Zacks assigns $4.50 per share valuation using DCF
• Record Q3 2025 with double-digit YoY revenue growth and improved adjusted EBITDA
• Acquisition of ZipDoctor supporting U.S. telehealth expansion

Negative

• Digital asset allocation includes Ethereum purchases, increasing exposure to crypto volatility
• Disclosed $300M financing facility could dilute or lever the balance sheet if drawn
• Valuation based on a 20% discount rate, reflecting elevated small‑cap execution risk
• Cosmos paid Zacks for the research, a potential conflict of interest for the report

News Market Reaction

-4.66% 7.9x vol

38 alerts

-4.66% News Effect

+14.9% Peak Tracked

-17.6% Trough Tracked

-$1M Valuation Impact

$22M Market Cap

7.9x Rel. Volume

On the day this news was published, COSM declined 4.66%, reflecting a moderate negative market reaction. Argus tracked a peak move of +14.9% during that session. Argus tracked a trough of -17.6% from its starting point during tracking. Our momentum scanner triggered 38 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $22M at that time. Trading volume was exceptionally heavy at 7.9x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Zacks DCF valuation: $4.50 per share Discount rate: 20% Terminal growth rate: 2% +5 more

8 metrics

Zacks DCF valuation $4.50 per share Coverage initiation January 13, 2026

Discount rate 20% Five-year discounted cash flow model

Terminal growth rate 2% DCF terminal growth assumption

2025 revenue projection $64.4 million Zacks revenue estimate for 2025

2026 revenue projection $98.6 million Zacks revenue estimate for 2026

2027 revenue outlook Over $130 million Zacks revenue expectation by 2027

Digital asset facility Up to $300 million Financing facility supporting Ethereum purchases and digital strategy

Price change pre-news -7.15% 24h move before coverage headline

Market Reality Check

Price: $0.4982 Vol: Volume 1,266,363 is 2.24x...

high vol

$0.4982 Last Close

Volume Volume 1,266,363 is 2.24x the 20-day average of 564,909, indicating elevated trading ahead of this coverage news. high

Technical Shares at $0.4676 are trading below the $0.64 200-day MA and 64.58% below the 52-week high.

Peers on Argus

COSM fell 7.15% while key peer YI appeared in momentum scanners moving up, and o...

1 Up

COSM fell 7.15% while key peer YI appeared in momentum scanners moving up, and other peers showed mixed moves. This points to stock-specific dynamics rather than a coordinated sector rotation.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Supply agreement	Positive	+3.0%	New PathMuscle manufacturing deal with minimum 591,500 units over five years.
Dec 24	Operations update	Positive	+1.1%	Q3 revenues above $17M and U.S. manufacturing push to offset tariffs.
Dec 19	Earnings and strategy	Positive	-4.0%	Record revenue quarter, margin expansion and crypto treasury disclosures.
Dec 03	Crypto treasury deal	Positive	-10.8%	Prime Ledger partnership to manage <b>$300,000,000</b> digital asset treasury and tokenize IP.
Dec 02	Insider purchases	Positive	-2.2%	CEO added 3.4M shares YTD alongside record Q3 metrics despite pressured valuation.

Pattern Detected

Recent crypto-tagged releases are largely positive but often met with mixed or negative next-day moves, suggesting a pattern of market skepticism toward bullish narratives.

Recent Company History

Over the past few months, Cosmos Health has reported record Q3 2025 results, expanding gross margins, and executed strategic deals such as the PathMuscle manufacturing agreement with volumes expected above 1.2 million units over five years. The company advanced a nanotechnology R&D program, expanded U.S. manufacturing to mitigate tariffs, and highlighted growing insider ownership, including CEO share additions exceeding 3.3 million shares in 2025. Today’s analyst coverage and valuation build on this narrative of operational scale, crypto-treasury strategy, and R&D-driven growth.

Regulatory & Risk Context

Active S-3 Shelf · $200,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-07

$200,000,000 registered capacity

An effective Form S-3 shelf filed on 2025-11-07 registers up to $200,000,000 of securities, plus an ATM program of up to $100,000,000 in common stock. This structure gives Cosmos Health flexibility to raise capital over time, including for crypto treasury acquisitions and general corporate purposes, which may introduce future equity issuance risk.

Market Pulse Summary

This announcement highlights third-party coverage from Zacks Small-Cap Research, assigning a DCF-bas...

Analysis

This announcement highlights third-party coverage from Zacks Small-Cap Research, assigning a DCF-based valuation of $4.50 and forecasting revenues above $130 million by 2027. It emphasizes Cosmos Health’s vertically integrated platform, AI-driven R&D via Cloudscreen, and a digital asset strategy backed by a $300 million facility. Investors may track future updates on revenue growth, free cash flow progression, execution of U.S. expansion, and any use of the registered $200,000,000 shelf and $100,000,000 ATM.

Key Terms

discounted cash flow (DCF), free cash flow, terminal growth rate, in silico, +4 more

8 terms

discounted cash flow (DCF) financial

"assigned a $4.50 per share valuation based on a discounted cash flow (DCF) analysis"

A discounted cash flow (DCF) is a way to estimate what an investment is worth today by forecasting the money it will generate in the future and shrinking those amounts to reflect time and risk — like valuing a fruit tree by totaling future harvests and adjusting for the fact that a dollar years from now is worth less than a dollar today. Investors use DCF to judge whether a stock or project is priced fairly and to compare opportunities, but results hinge heavily on the assumptions about future cash and the discount rate.

free cash flow financial

"modeled transition toward positive free cash flow over time"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

terminal growth rate financial

"and a 2% terminal growth rate"

The terminal growth rate is the steady, long-term pace at which a company’s cash flows are assumed to grow after a detailed forecast period, used to estimate the company’s value far into the future. Think of it like assuming a car will settle into a constant cruising speed after accelerating—small changes in that assumed speed can greatly change the estimated value, so investors watch it closely when valuing stocks.

in silico medical

"The platform uses in silico screening and multimodal biochemical data"

In silico means using computer models, simulations, or data analysis to study biological, chemical, or financial processes instead of physical experiments. For investors, in silico work can speed up research, lower costs and highlight promising opportunities or risks early—like using a flight simulator to test maneuvers before flying a real plane—while still requiring real-world testing to confirm results.

multimodal biochemical data medical

"in silico screening and multimodal biochemical data to identify potential new"

Data collected from multiple kinds of biochemical measurements—such as genetic tests, protein levels, metabolites, and imaging—combined to give a fuller picture of a biological system. Like viewing a scene with different cameras (audio, infrared, and high‑resolution video) so you don’t miss important details, multimodal biochemical data reduces blind spots in drug development, diagnostics, and biomarker validation, which can lower scientific and commercial risk and help investors judge the strength and differentiation of a biotech opportunity.

telehealth medical

"ZipDoctor, a U.S.-based telehealth subscription platform providing direct-to-consumer access"

Telehealth is the delivery of healthcare services and consultations remotely using video calls, phone, text messaging, or connected devices to monitor and transmit medical information. It matters to investors because it can reshape how patients access care, lower costs, and create new revenue streams or risks for healthcare providers, insurers and technology companies—similar to how online banking changed financial services—while also exposing businesses to reimbursement and regulatory shifts.

blockchain technical

"Digital Assets and Blockchain StrategyThe report notes that Cosmos Health has implemented"

A blockchain is a digital record-keeping system that securely stores information across many computers, making it difficult to alter or tamper with. Think of it like a shared, unchangeable ledger that everyone can see and verify, ensuring transparency and trust. For investors, this technology offers a way to securely track transactions and assets without relying on a central authority, potentially reducing costs and increasing security.

tokenization technical

"explore tokenization of intellectual property assets"

Tokenization is the process of converting real-world assets or rights into digital tokens stored on a computer network. This allows assets, such as property or investments, to be divided into smaller parts, making them easier to buy, sell, or transfer electronically. For investors, tokenization can increase access to a wider range of investments and make transactions faster and more efficient.

AI-generated analysis. Not financial advice.

CHICAGO, Jan. 14, 2026 (GLOBE NEWSWIRE) -- Cosmos Health Inc. ("Cosmos Health" or the “Company”) (NASDAQ:COSM), a diversified, vertically integrated global healthcare group, today announced that Zacks Small-Cap Research (“Zacks”) has initiated coverage on the Company with a valuation of $4.50 per share, according to a research report published on January 13, 2026 and authored by analyst Brad Sorensen.

Zacks highlighted Cosmos Health’s diversified revenue base, vertically integrated pharmaceutical and manufacturing operations, technology-enabled initiatives, expansion into the U.S. market, and improving financial performance as key factors supporting its valuation.

Key Highlights from Zacks Small-Cap Research Coverage

Initiation of Coverage with $4.50 Per Share Valuation
Zacks initiated coverage on Cosmos Health and assigned a $4.50 per share valuation based on a discounted cash flow (DCF) analysis, reflecting projected revenue growth, improving gross margins, and a modeled transition toward positive free cash flow over time.

Valuation Methodology
Zacks applied a five-year discounted cash flow framework using a 20% discount rate, reflecting the Company’s small-cap profile and execution risk. The model assumes moderate near-term revenue growth, accelerating in later years, steady improvement in free cash flow margins, and a 2% terminal growth rate.

Strong Revenue Growth Outlook
Zacks projects Cosmos Health revenues to grow from approximately $64.4 million in 2025 to $98.6 million in 2026, with further expansion to over $130 million by 2027, driven by higher-margin pharmaceutical products, branded nutraceuticals, and technology-enabled services.

Vertically Integrated Healthcare Platform
The report highlights Cosmos Health’s vertically integrated operating model, spanning pharmaceutical distribution, GDP-compliant wholesale operations, GMP-certified manufacturing, proprietary nutraceutical brands, telehealth services, and AI-enabled research and development.

U.S. Market Entry
Zacks references Cosmos Health’s expansion into the United States market, highlighted by the acquisition of ZipDoctor, a U.S.-based telehealth subscription platform providing direct-to-consumer access. The report also notes the launch of Sky Premium Life in the U.S. nutraceutical market.

Advancing R&D Pipeline
Zacks references Cosmos Health’s development programs, including CCX0722 for obesity and weight management, as well as additional repurposed compounds targeting multiple sclerosis, allergies, and oncology-related indications, with projects advancing toward clinical and regulatory milestones. These R&D efforts reflect the Company’s focus on identifying and progressing candidates that address large disease markets.

AI-Driven Innovation via Cloudscreen
Zacks identifies the acquisition of Cloudscreen, an AI-enabled drug repurposing and R&D platform, as a key technology supporting Cosmos Health’s research and development activities. The platform uses in silico screening and multimodal biochemical data to identify potential new therapeutic uses for existing compounds, with the goal of shortening development timelines, reducing discovery costs, and supporting potential licensing or development outcomes.

Digital Assets and Blockchain Strategy
The report notes that Cosmos Health has implemented a digital asset allocation program, including the purchase of Ethereum (ETH), supported by a disclosed financing facility of up to $300 million. Zacks also references the Company’s strategic partnership with Prime Ledger LLC to manage digital assets and explore tokenization of intellectual property assets.

Improving Financial Performance and Margin Expansion
Zacks highlights Cosmos Health’s record third quarter of 2025, which included 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.

Greg Siokas, CEO of Cosmos Health, stated: “We are pleased to see Zacks Small-Cap Research initiate coverage of Cosmos Health and recognize the transformation we have been executing across our organization. This coverage underscores the strength of our vertically integrated model, our accelerating revenue growth, and the strategic importance of our investments in AI-driven drug repurposing, proprietary pharmaceutical and nutraceutical brands, and digital health services. As we continue to scale higher-margin products, advance our R&D pipeline, and improve operational efficiency, we believe Cosmos Health is entering an important inflection point with substantial long-term value creation potential for our shareholders.”

Cosmos Health notes that it has compensated Zacks Small-Cap Research for the preparation and publication of this independent research report, as disclosed in the report. The Company believes that providing shareholders with broader access to third-party research and analysis supports transparency and informed decision-making.

About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life®, Mediterranation®, bio-bebe®, C-Sept® and C-Scrub®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.cana.gr, www.zipdoctor.co, www.cloudscreen.gr, as well as LinkedIn and X.

Forward-Looking Statements
With the exception of the historical information contained in this news release, the matters described herein may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could,” generally identify forward-looking statements, although not all forward-looking statements contain these words. These statements involve risks and uncertainties that may individually or materially affect the matters discussed herein for a variety of reasons outside the Company’s control, including, but not limited to: the Company’s ability to raise sufficient financing to implement its business plan; the effectiveness of its digital asset strategies, including accumulation and yield-generating activities; the impact of the war in Ukraine on the Company’s business, operations, and the economy in general; and the Company’s ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, as actual results could differ materially from those anticipated. Readers are encouraged to review the risk factors set forth in the Company’s filings with the SEC, which are available at the SEC’s website (www.sec.gov). The Company disclaims any obligation to update or revise forward-looking statements, whether as a result of any new information, future events, or otherwise.

Investor Relations Contact:
BDG Communications
cosm@bdgcommunications.com

FAQ

What valuation did Zacks assign to Cosmos Health (NASDAQ:COSM) on January 13, 2026?

Zacks initiated coverage with a $4.50 per share valuation based on a five-year DCF.

How much revenue does Zacks project for COSM in 2026 and 2027?

Zacks projects $98.6M in 2026 and over $130M in 2027 for Cosmos Health.

What growth supported Zacks' coverage of Cosmos Health (COSM)?

Zacks cited diversified, higher-margin pharma and nutraceuticals, telehealth expansion, and Cloudscreen AI R&D as drivers of accelerating revenue and margin improvement.

Did Cosmos Health disclose any financing or digital asset activity in the Zacks report?

Yes; the company disclosed purchases of Ethereum and a financing facility of up to $300M.

What U.S. activities did Zacks cite for Cosmos Health (COSM)?

Zacks referenced the acquisition of ZipDoctor and the U.S. launch of Sky Premium Life nutraceuticals.

Does the Zacks valuation reflect company risk for COSM shareholders?

Zacks used a 20% discount rate in its DCF, indicating assumed small‑cap execution risk in the valuation.