NEW YORK (TheStreet) -- Alere (ALR) shares are up 6.7% to $36.11 on Monday as investors have reacted positively to the company's announcement that it is reviewing its strategy and separating the roles of its CEO and chairman.
The point-of-care and diagnostic health services provider announced that the company's board of directors had unanimously elected Gregg J. Powers as the new board chairman. Former chairman Ron Zwanziger will continue in his role as CEO, president and board member.
The company also said that it would seek advice from an unnamed international consulting firm to "identify opportunities to enhance shareholder value."
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TheStreet Ratings team rates ALERE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALERE INC (ALR) 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 solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."