Jason McCarthy, an analyst at Maxim Group, has raised the investment bank's rating on Co-Diagnostics (NASDAQ: CODX). Increasing sales of Co-Diagnostics' test for COVID-19 led McCarthy to upgrade the stock to a buy and give it a $30 price target. A 63% gain ahead? Despite McCarthy's ambitious new price target and rating upgrade, shares of Co-Diagnostics fell about 2.5% during the first half of Wednesday's trading session. At the stock's recent price of $18.27, Maxim's new target suggests a 63% gain once the rest of the market sees the company's future in the same light as McCarthy. Image source: Getty Images. As Co-Diagnostics revealed in the earnings report it delivered last week, sales of the Logix Smart CODIV-19 test helped lift its total revenue to $1.5 million during the first quarter, but analysts following the company expect enormous gains from there when the company reports on Q2. Co-Diagnostics has boosted production capacity at its main facility in Salt Lake City and at a plant in India as part of a joint venture to meet soaring demand. With distribution across 15 U.S. states, plus dozens of countries around the world eager to contain their own COVID-19 outbreaks, sales of the company's molecular diagnostic could pass $80 million in 2020. Play it safe At recent prices, Co-Diagnostics stock is trading at about 6.2 times 2020 sales expectations, which isn't a bad price to pay if you can assume the company will continue raising sales at a moderate pace throughout the COVID-19 pandemic and beyond. Before jumping in head first, though, it's important to realize that reaching Maxim's price target will require some rapid scaling of operations that this relatively young company might not be ready for. If the market sees doesn't see sales rising fast enough when the company reports again in a few months, this stock's price could quickly come crashing down. 10 stocks we like better than Co-Diagnostics, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Co-Diagnostics, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source