Syneron Medical Ltd (ELOS)

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CIBC: Syneron may double expected VelaSmooth sales in the third quarter
15.9.2005 | 21:00
Omri Cohen

On September 12, 2005, American Laser Centers announced its acquisition of Lynnwood, Wash.-based Advanced Laser Clinics, doubling its number of treatment centers and expanding to 31 states around the United States. Why should Israeli investors know? Possibly because American Laser Centers is a client of Syneron (TASE, Nasdaq:ELOS) and the transaction stands to add significantly to the Israeli company's revenues, suggests CIBC.

Syneron could be in line for a big order from the American company, amounting to $5 million or more, for its VelaSmooth anti-cellulite and wrinkle fighting devices.

CIBC also sought to assuage investor concern about the VelaSmooth, which remains Syneron's exclusive property and recently received U.S. marketing approval. There were claims that the device didn't really deliver and that doctors were dissatisfied, and that competition was developing, the analysts recap. Investors shouldn't let those reports deter them, they conclude.

The investment bank reiterated an Outperform investment rating and 12-month price target of $52, compared with its present share price today of $37.40. They foresee potential sales of 125 VelaSmooth units in the third quarter, which is double initial projections.

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