BlueStone Capital Partners, L.P., Initiates Coverage On Coherent, Inc. With a Long - Term Buy Rating.NEW YORK--(BUSINESS WIRE)--Nov. 18, 1998--Senior Analyst, Scott Baily of BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners, L.P. initiates coverage on Coherent, Inc. with a LONG - TERM BUY rating (COHR-NASDAQ). Coherent, Inc. (COHR COHR Congolese Observatory of Human Rights ), headquartered in Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. , designs, manufactures and markets over 150 lasers, laser systems, precision optics and related accessories. Analyst's Summary: - We are initiating coverage of COHR with a LONG-TERM BUY rating, and a 12-18 month price target of $17-$22. With COHR's stock currently selling 23% above book value of $11.00, we believe the stock offers investors excellent long-term value based on COHR's growth prospects. - COHR is currently the largest laser company in the world, serving two primary markets: Medical and Electro-Optical. In our opinion, COHR is clearly a market leader in each of the markets it addresses, and is arguably a technological leader in each target market as well. - Although COHR reported a significant operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in its Medical Laser Segment (MLS See multilevel security. ) and a disappointing overall loss in the 3Q FY98 (June) period, management has moved rapidly to turnaround the MLS problems and return the business to previous levels of profitability. - In FY99, COHR's most attractive growth opportunities include: 1) LightSheer diode laser (hair removal) & VersaPulse Select laser (benign prostatic hyperplasia benign prostatic hyperplasia n. Abbr. BPH A nonmalignant enlargement of the prostate gland commonly occurring in men after the age of 50, and sometimes leading to compression of the urethra and obstruction of the flow of urine. ); 2) deep ultraviolet (DUV DUV Deep Ultraviolet DUV Data-Under-Voice DUV Design Under Verification ) photolithography systems sales; 3) a new laser & photonics catalog of 5000 laser components at the Auburn Group; and, 4) doubling of semiconductor group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. from about $4 to $8 million. - Importantly, COHR recently announced it was negotiating with Palomar Medical to acquire Star Medical Technologies, the maker of the LightSheer Diode laser for hair removal, for $60-$65 million in cash. COHR currently distributes the LightSheer. Star's revenues are tracking at an annual rate of about $60 million, and management expects the deal can close by 2Q FY99. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services to emerging growth and medium size companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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