NEW YORK (TheStreet) -- Wells Fargo upgraded Bruker (BRKR - Get Report) to "outperform" from "market perform." The firm said the company appears willing to make a major overhaul to turn the business around.
The stock was up 2.25% to $23.60 in pre-market trading on Thursday.
Separately, TheStreet Ratings team rates BRUKER CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BRUKER CORP (BRKR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 36.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- BRUKER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, BRUKER CORP increased its bottom line by earning $0.48 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($0.87 versus $0.48).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Life Sciences Tools & Services industry average. The net income increased by 61.1% when compared to the same quarter one year prior, rising from $5.40 million to $8.70 million.
- BRKR's revenue growth trails the industry average of 18.7%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.12, which illustrates the ability to avoid short-term cash problems.
- You can view the full analysis from the report here: BRKR Ratings Report