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NEW YORK (TheStreet) -- Ladenburg Thalmann Financial Services (LTS) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LADENBURG THALMANN FINL SERV (LTS) a BUY. This is driven by a number of 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 revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 13.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- LADENBURG THALMANN FINL SERV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, LADENBURG THALMANN FINL SERV continued to lose money by earning -$0.04 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.04).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 153.3% when compared to the same quarter one year prior, rising from -$5.52 million to $2.94 million.
- Net operating cash flow has significantly increased by 510.14% to $9.83 million when compared to the same quarter last year. In addition, LADENBURG THALMANN FINL SERV has also vastly surpassed the industry average cash flow growth rate of -88.95%.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 118.34% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: LTS Ratings Report
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