NEW YORK (TheStreet) -- Amicus Therapeutics (FOLD) shares are spiking up, 25% to $4.17, on Tuesday after being upgraded to a "buy" rating by analysts at both Leerink and Janney Capital, continuing the rally that saw the stock rise nine points on Monday.
The upgraded outlook reflects the success of the company's Phase 3 study of its Fabry disease treatment, Migalastat.
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TheStreet Ratings team rates AMICUS THERAPEUTICS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMICUS THERAPEUTICS INC (FOLD) a SELL. This is driven by some concerns, 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. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Biotechnology industry. The net income increased by 8.7% when compared to the same quarter one year prior, going from -$17.46 million to -$15.94 million.
- Despite currently having a low debt-to-equity ratio of 0.46, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 7.65 is very high and demonstrates very strong liquidity.
- AMICUS THERAPEUTICS INC has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMICUS THERAPEUTICS INC reported poor results of -$1.17 versus -$1.09 in the prior year. This year, the market expects an improvement in earnings (-$0.93 versus -$1.17).
- This stock has increased by 36.11% 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 FOLD 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: FOLD Ratings Report