TOMI Environmental Solutions: Analyst Maintains Buy Rating Amid Promising International Expansion and Product Innovation

Analyst Amit Dayal of H.C. Wainwright maintains a Buy rating on TOMI Environmental Solutions with a price target of $3.50. Despite a decline in 2Q25 revenues, the company has maintained strong gross margins and a positive outlook for H2 2025. International expansion and product innovation, including new product lines and partnerships with organizations like NASA, are key drivers of the Buy rating. Dayal has an average return of -6.4% and a 33.27% success rate.

Analyst Amit Dayal of H.C. Wainwright has maintained a Buy rating on TOMI Environmental Solutions (TOMZ) with a price target of $3.50, despite the company reporting a decline in Q2 2025 revenues. The rating is supported by strong gross margins and a positive outlook for the second half of the year [1].

Dayal cited several factors contributing to the Buy rating. The company has maintained a healthy gross margin of 66% in Q2 2025, up from 62% in the same period last year. Additionally, TOMI has a significant backlog and numerous contracts under negotiation, indicating a promising pipeline for future growth [2].

International expansion is another key driver for the Buy rating. A substantial portion of TOMI's revenues now comes from outside the U.S., with strong pipelines being developed in Europe pending regulatory approvals [1]. The company's product portfolio has also been advancing, with new product lines and significant contracts, such as the SteraMist Integration System and partnerships with organizations like NASA and Pharma Biotech System Components Ltd [1].

In other recent news, TOMI Environmental Solutions reported a significant year-over-year increase in net revenue for the first quarter of 2025, reaching approximately $1.6 million. The company also reduced its total operating expenses to around $1.7 million in the first quarter of 2025, compared to $1.9 million in the first quarter of 2024. The company secured its fourth order for the SteraMist Integration System platform from ARES Distribution and appointed David Vanston as its new Chief Financial Officer [3].

Despite the revenue decline in Q2 2025, TOMI's gross margin and service revenue growth indicate resilience. The company is focused on expanding recurring service contracts, growing solution sales, and strengthening its corporate team to counter revenue challenges [2].

References:

[1] https://www.tipranks.com/news/ratings/promising-outlook-for-tomi-environmental-solutions-buy-rating-supported-by-international-expansion-and-product-innovation-ratings
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U41Y2:0-tomi-environmental-solutions-inc-expected-to-post-a-loss-of-3-cents-a-share-earnings-preview/
[3] https://www.investing.com/news/company-news/tomi-environmental-solutions-secures-orders-from-eye-health-leader-93CH-4185172