Syneron Is Trading at 31% Discount to Peers, Says Unterberg

Wall Street expects earnings in the range of $1.85 to $2.42 per share for 2006

Syneron (TASE, Nasdaq: ELOS) is trading at a discount of 31% compared with its peer group, says the investment bank CE Unterberg Towbin.

Its peer group, by the way, is small medical technology companies, mainly ones making products for laser and cosmetic therapies.

Tomorrow Syneron will be publishing its fourth-quarter and 2005 financial statements.

Unterberg predicts 38% quarterly revenue growth against the parallel quarter to $24.2 million, and a 51% leap in profit to 45 cents per share.

The company guided investors to expect $24 million sales. In January 2006, it lowered its guidance downward from $27.3 million - $28.3 million, which helped it lose 40% of its market cap since mid-December.

The company's market cap had been more than a billion dollars but has sunk to $685 million.

At the time Syneron tried to soften the blow, reporting that its fourth-quarter results will not be including transactions worth between $3 million to $4 million. The devices had been shipped and if these transactions were included, its 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.