The firm upgraded shares due to share declines and sees potential catslysts ahead that include BMN 111 Ph I/II results in Q2 2015, BMN 190 and PEG-PAL results in late 2015 and Ph III BMN-701 enrollment in 1H 2015.
Separately, TheStreet Ratings team rates BIOMARIN PHARMACEUTICAL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BIOMARIN PHARMACEUTICAL INC (BMRN) 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 revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 25.8%. Since the same quarter one year prior, revenues rose by 18.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for BIOMARIN PHARMACEUTICAL INC is currently very high, coming in at 91.28%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -25.14% is in-line with the industry average.
- Net operating cash flow has increased to -$26.87 million or 16.09% when compared to the same quarter last year. Despite an increase in cash flow, BIOMARIN PHARMACEUTICAL INC's average is still marginally south of the industry average growth rate of 16.92%.
- BIOMARIN PHARMACEUTICAL INC has improved earnings per share by 12.9% in the most recent quarter compared to the same quarter a year ago. 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, BIOMARIN PHARMACEUTICAL INC reported poor results of -$1.29 versus -$0.95 in the prior year. For the next year, the market is expecting a contraction of 36.0% in earnings (-$1.76 versus -$1.29).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, BIOMARIN PHARMACEUTICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: BMRN Ratings Report