NEW YORK (

TheStreet

)

-- QLT

(Nasdaq:

QLTI

) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that net income has been generally deteriorating over time.

Highlights from the ratings report include:

  • 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 Biotechnology industry. The net income has significantly decreased by 123.9% when compared to the same quarter one year ago, falling from $80.58 million to -$19.23 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market on the basis of return on equity, QLT INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 7.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • QLTI 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 16.89, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 43.28% and other important driving factors, this stock has surged by 31.85% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.

QLT Inc., a biotechnology company, engages in the development and commercialization of therapies for the eye. It offers Visudyne, a photosensitizer to treat the eye disease, known as wet age related macular degeneration (wet AMD). QLT has a market cap of $388.3 million and is part of the

TheStreet Recommends

health care

sector and

drugs

industry. Shares are up 5.6% year to date as of the previous trading day's close.

You can view the full

QLT Ratings Report

or get investment ideas from our

investment research center

.

null