Syneron Medical rises as analyst expects recovery for laser cosmetic market and raises ratingBy AP
Friday, September 18, 2009
Syneron advances following upgrade to ‘Outperform’
NEW YORK — Shares of Syneron Medical Ltd. rose Friday after an Oppenheimer analyst upgraded the stock, saying he believes the market for laser cosmetic surgery procedures has hit a low point and will start to recover.
Analyst Amit Hazan upgraded the Israeli company’s stock to “Outperform” from “Perform,” and set a price target of $16 per share, which would be an annual high for Syneron stock. He said the market for laser procedures and equipment should get stronger after a precipitous decline.
In morning trading, Syneron shares rose 61 cents, or 6.6 percent, to $9.82.
Syneron makes radiofrequency and laser devices used in skin treatments, dental procedures and hair removal. The company’s profits and revenue have dropped during the global economic slump.
After running a survey, Hazan said only 13 percent of respondents bought a laser system in the last six months, but 22 percent plan to buy one in the next year. He also believes Syneron’s purchase of former rival Candela Corp. will work well. He said the companies’ products and locations are “largely complementary.”
Syneron agreed to buy Candela last week for about $65 million in stock. The deal is expected to close by the end of 2009.