Leerink Partners Downgrades Syneron Medical (ELOS) to Market Perform

August 5, 2016 6:25 AM EDT
Get Alerts ELOS Hot Sheet
Price: $8.65 -2.26%

Rating Summary:
    2 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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Leerink Partners downgraded Syneron Medical (NASDAQ: ELOS) from Outperform to Market Perform with a price target of $7.80 (from $9.40).

Analyst Richard Newitter commented, "We are downgrading ELOS to MP from OP as we believe mixed 2Q results (which included a big NA rev miss) will add to a “mgmt. execution” overhang that has been weighing down on the stock for some time and is likely to limit further multiple expansion prospects. A new leadership structure/mgmt. change (announced with 2Q results) in NA does not necessarily increase our confidence there will be a quick fix in store. This is the 2nd NA mgmt. re-org in the past 2 yrs and following past ones, ELOS has still lost share and delivered lumpy growth trends. We also worry that challenges in the NA business are more systemic in nature and UltraShape's underperformance in the increasingly competitive US non-invasive (NI) fat segment extends beyond "execution"---i.e. ELOS may just have a less competitive offering. Our PT goes to $7.80 (vs. $9.40) assuming minimal multiple expansion from current levels on a slightly lower '17E rev."

For an analyst ratings summary and ratings history on Syneron Medical click here. For more ratings news on Syneron Medical click here.

Shares of Syneron Medical closed at $6.86 yesterday.

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