NEW YORK (TheStreet) -- Tekmira Pharmaceuticals (TKMR shares are up 12.2% to $20.30 on heavy trading on Monday after analysts at Leerink initiated coverage with an "outperform" rating and $25 price target.
Analysts at the firm believe that the company is "uniquely positioned" for growth due to the potential of its hepatitis B drug treatment to be a growth catalyst.
Nearly nine million shares have been traded so far today, more than seven million more than the company's daily average.
TheStreet Ratings team rates TEKMIRA PHARMACEUTICALS CORP as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEKMIRA PHARMACEUTICALS CORP (TKMR) a SELL. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TEKMIRA PHARMACEUTICALS CORP's earnings per share declined by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TEKMIRA PHARMACEUTICALS CORP swung to a loss, reporting -$0.96 versus $1.87 in the prior year.
- 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 96.5% when compared to the same quarter one year ago, falling from -$3.11 million to -$6.10 million.
- The revenue fell significantly faster than the industry average of 42.3%. Since the same quarter one year prior, revenues fell by 38.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Compared to its closing price of one year ago, TKMR's share price has jumped by 213.09%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in TKMR 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: TKMR Ratings Report
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