NEW YORK (TheStreet) -- Illumina (ILMN - Get Report) shares are up 0.3% to $179.33 on Monday after having coverage initiated with an "equal weight" rating and $190 price target by analysts at Morgan Stanley (MS - Get Report) .

The life sciences and diagnostic tool manufacturer's price target represents a 6% upside from its current price.

Two weeks ago the company announced that it has entered into a partnership with pharmaceutical companies AstraZeneca (AZN - Get Report) , Janssen Biotech, and Sanofi (SNY - Get Report) to supply them with next generation sequencing oncology test systems.

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TheStreet Ratings team rates ILLUMINA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ILLUMINA INC (ILMN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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

  • ILMN's revenue growth has slightly outpaced the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 29.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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, ILLUMINA INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for ILLUMINA INC is currently very high, coming in at 74.38%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.41% is above that of the industry average.
  • Net operating cash flow has significantly increased by 100.92% to $178.03 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 67.56%.
  • 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 29.9% when compared to the same quarter one year prior, rising from $35.88 million to $46.61 million.
  • You can view the full analysis from the report here: ILMN Ratings Report

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