Syneron Medical Ltd (ELOS)

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Syneron diving 9% after CIBC downgrade to Sector Perform

30.12.05 | 17:44 By Omri Cohen
CIBC World Markets had been bullish on Syneron (TASE, Nasdaq: ELOS) stock, but the investment bank downgraded it today from Outperform to Sector Perform.
The downgrade sent Syneron stock reeling. As of writing it was down 9.3% to $32.40.
CIBC pointed to new competition in devices for cosmetic treatments and concerns that Syneron would have difficulty meeting expectations for the last quarter of 2005.
In parallel the analysts lowered their forecasts for Syneron this year and next.
Syneron stock has lost 30% in the space of two weeks, from its record height of $46.
For the fourth quarter CIBC now expects $26.3 million sales instead of $31.5 million, and lowered its earnings estimate to 50 cents per share, from 58 cents.
In October-December the average analyst forecast had been $29 million revenues and 54 cents per share in earnings.
It also lowered the figures for 2006 to sales of $116 million, from $137 million, or growth of 29% against $90 million sales this year. That figure for 2005 represents 55% growth against 2004.

CIBC also cut its earnings forecast to $2.04 per share instead of $2.39.

It does note that the launch of VelaSmooth, a cellulite treatment, has been successful and sales continued to grow in the fourth quarter. Growth drivers include Syneron's dental product line, and a noninvasive fat treatment device slated for launch in 2007.

http://www.haaretz.com/hasen/spages/664456.html

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