Ratings Changes: Cablevision, Eaton Vance

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded BioMarin Pharmaceutical(BMRN Quote) to "hold." The company develops treatments for genetic diseases.

The numbers: Second-quarter revenue increased 29% to $83 million, but net income dropped 66% to $1.3 million and earnings per share fell 75% to 1 cent, hurt by a higher share count. Its operating margin deteriorated from 7% to 5% and its net margin declined from 6% to 2%. The company has ample liquidity, with $200 million of cash, amounting to a high quick ratio of 7.2. But a debt-to-equity ratio of 1.8 indicates excessive leverage.

The stock: BioMarin is down 8% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 204, which reflects lofty growth expectations, and doesn't pay dividends.

The model upgraded cable-television provider Cablevision Systems(CVC Quote) to "hold."

The numbers: Second-quarter revenue jumped 10% to $1.9 billion, but net income deteriorated 8% to $87 million, or 29 cents. Its operating margin inched past 18% and its net margin dropped below 5%. The company has inadequate liquidity, which is reflected in its quick ratio of 0.5. And $12 billion of debt and negative shareholders' equity indicate excessive leverage.

The stock: Cablevision is up 25% this year, beating the Dow Jones Industrial Average and the S&P 500 Index. The stock offers a lackluster 1.9% dividend yield.

The model upgraded asset manager Eaton Vance(EV Quote) to "buy."

The numbers: Second-quarter net income plummeted 52% to $26 million, or 22 cents, as revenue declined 28% to $198 million. Its operating margin dropped from 35% to 23% and its net margin declined from 19% to 13%. Eaton Vance has strong liquidity, with more than $309 million of cash and a quick ratio of 3.3. But a debt-to-equity ratio of 1.7 illustrates its heavy use of debt financing.