NEW YORK (TheStreet) -- Cesca Therapeutics (KOOL - Get Report) shares shot up 29.4% to $2.06 in trading on Thursday.
The company had coverage initiated on their shares with a "buy" rating by analysts at Maxim Group.
The firm set a price target of $7 on the shares, suggesting a 289% increase from Thursday's opening of $1.80.
TheStreet Ratings team rates CESCA THERAPEUTICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CESCA THERAPEUTICS INC (KOOL) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 184.7% when compared to the same quarter one year ago, falling from -$0.56 million to -$1.60 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CESCA THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$2.95 million or 71.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 43.87% is the gross profit margin for CESCA THERAPEUTICS INC which we consider to be strong. Regardless of KOOL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KOOL's net profit margin of -35.87% significantly underperformed when compared to the industry average.
- KOOL, with its decline in revenue, underperformed when compared the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: KOOL Ratings Report