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NEW YORK (TheStreet) -- Biota Pharmaceuticals (BOTA) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BIOTA PHARMACEUTICALS INC (BOTA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 6600.0% when compared to the same quarter one year prior, rising from -$0.10 million to $6.50 million.
- BOTA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 7.82, which clearly demonstrates the ability to cover short-term cash needs.
- The revenue fell significantly faster than the industry average of 41.5%. Since the same quarter one year prior, revenues fell by 24.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market, BIOTA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- BIOTA PHARMACEUTICALS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BIOTA PHARMACEUTICALS INC reported poor results of -$0.34 versus -$0.05 in the prior year. For the next year, the market is expecting a contraction of 47.0% in earnings (-$0.50 versus -$0.34).
- You can view the full analysis from the report here: BOTA Ratings Report