CIBC World upgraded Syneron Medical (ELOS
) to sector outperform from sector perform, noting strength in the dermatology market.
Analyst John Calcagnini noted feedback from the American Academy of Dermatology meeting saying that the dermatology market remains surprisingly strong. Also, he notes that Syneron Medical has unveiled a new line of laser and light source products for skin tightening, non-ablative photorejuvenation, and hair removal. He believes this new product line, as well as new market opportunities, will help Syneron Medical shares begin to trade back toward the peer group average after having been punished since the company's fourth quarter disappointment. He maintains his $2.00 2006 earnings per share (EPS) and $2.40 2007 EPS estimates. He set a $40 stock price target.