Syneron Medical (ELOS)

Syneron Medical, Ltd. (ELOS - Snapshot Report) was founded in 2000 and is engaged in the design, development, and marketing of aesthetic medical products based on its proprietary electro-optical synergy (ELOS) technology. Its medical aesthetic devices are powered by proprietary software, and use combined-energy technology of bi-polar radio frequency (RF) and optical energy (laser or non-coherent light).

ELOS competes in a very competitive market. With more than half of its sales derived from the United States, a weak economic outlook leads us to believe that sales growth will slow. As a result, we have reduced our revenue and EPS estimates.

Given the largely discretionary nature of the aesthetics laser business, the outlook could weaken further given current trends in the global economy. We are reducing out target price and recommending a Sell rating for this stock.