Will 'Buy' Rating Help Compugen (CGEN) Today?

NEW YORK (TheStreet) -- Compugen (CGEN) was given a "buy" rating with a price target of $17 by analysts at Jefferies Group. The Israel-based drug discovery company has a 52-week low of $4.56 and a 52 week high of $14.32. Shares opened at $11.45 Wednesday.

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Separately, TheStreet Ratings team rates COMPUGEN LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate COMPUGEN LTD (CGEN) a SELL. This is driven by multiple weaknesses, 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 area that we feel has been the company's primary weakness has been its disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, COMPUGEN LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COMPUGEN LTD is rather high; currently it is at 54.37%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -164.95% is in-line with the industry average.
  • COMPUGEN LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, COMPUGEN LTD continued to lose money by earning -$0.37 versus -$0.39 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 45.5% when compared to the same quarter one year prior, rising from -$5.37 million to -$2.93 million.
  • This stock has increased by 95.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in CGEN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • You can view the full analysis from the report here: CGEN Ratings Report
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