Syneron is trading at a discount of 31 percent compared with its peer group, says the investment bank CE Unterberg Towbin.
The Yokneam-based company belongs to a group of small medical technology companies, mainly ones that make products for laser and cosmetic therapies.
Syneron is scheduled to publish its fourth-quarter and 2005 financial statements today.
Unterberg predicts a 38 percent quarterly revenue growth against the parallel quarter to $24.2 million, and a 51 percent leap in profit to 45 cents per share. The company led investors to expect $24 million sales.
In January 2006, it lowered its guidance from a range of $27.3-$28.3 million, which helped it lose 40 percent of its market cap since mid-December. The company's market cap had been more than $1 billion, but has sunk to $685 million.
At the time Syneron, which makes laser-based medical devices to treat the skin, tried to soften the blow, reporting that its fourth-quarter results will not include transactions worth between $3 million to $4 million.
The devices in question had been shipped and if the transactions had been included, sales would have been $27 million, as expected.
The company has not yet provided guidance for 2006. Wall Street expects earnings in the range of $1.85 to $2.42 per share on revenues of $106.8 million to $127 million.
Syneron shares closed up 0.90 percent yesterday to $27.98 on Nasdaq in anticipation of the report.
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