NEW YORK (TheStreet) -- Shares of Ariad Pharmaceuticals (ARIA) were advancing in late afternoon trading on Monday as Leerink began covering the stock with an "outperform" rating and $20 price target earlier today.

"Despite recent strong stock performance, Ariad shares still trade at a discount to other commercial stage oncology biotech companies while the top line is expected to grow above that of its peers with a 35% 2016 to 2018 compound annual growth rate (CAGR)," the firm said.

Ariad's brigatinib drug for certain types of lung cancer is "underappreciated" by Wall Street due to its late entry into the market, Leerink said.

But the firm said that brigatinib is "well-positioned" to exceed commercial expectations.

Also, the company's AP32788 drug candidate for non-small cell lung cancers could be "a potential best in class," as phase I data expected in mid-2017 could provide an additional upside, Leerink noted.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.

Among the areas we feel are negative, one of the most important has been weak operating cash flow.

You can view the full analysis from the report here: ARIA