BlueStone Capital Partners Announces Investment Opinion on Candela Corporation.NEW YORK--(BUSINESS WIRE)--April 26, 1999-- 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 Reiterates Strong Buy Recommendation of Candela candela (kăndĕ`lə), in weights and measures: see candle. A unit of measurement of the intensity of light. Part of the SI system of measurement, one candela (cd) is the monochromatic radiation of 540THz with a radiant intensity Corporation. Acting director of Equity Research, Scott A. Baily at BlueStone Capital Partners, L.P. reiterates a Strong Buy recommendation of Candela Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CLZR - $13-3/8) with a target price of $15-3/4 - $20. Analyst's Summary -- Strong Buy. We strongly recommend purchase of CLZR stock for the long-term, growth-oriented investors. With the stock currently selling for 12.7 and 10.3 times our revised FY99 and FY00 (June) EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. estimates of $1.05 and $1.30, we believe the stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. relative to its growth prospects. Our previous EPS estimates were $0.95 for FY99 and $1.30 for FY00. With CLZR's stock selling at $13-3/8, it is at a substantial discount in comparison to its growth rate. In addition, we expect considerable P/E P/E See: Price/earnings ratio expansion over the next year. Despite the surge in the stock recently, we expect additional sponsorship from the street this year, and if CLZR's P/E achieves even a modest 15x our EPS estimates this year and next, we believe the stock's upside remains attractive. With a P/E of 15x-20x, our FY99 and FY00 EPS estimates, we believe our revised 12-18 month price target of at least $15-3/4 to $20 is both realistic and achievable. -- CLZR's reported its best quarter in its history, with revenues and EPS for the Q3 FY99 (March) increasing to $15.8 million and $0.31 (diluted), respectively, compared to $8.6 million and ($0.04) last year. We had been estimating revenues of $14.5 million and EPS of $0.25. Moreover, gross margins rose 57 percent in Q3 FY99 versus 44.6 percent last year. CLZR's excellent Q3 performance was primarily due to strong demand for its market leading aesthetic products, GentleLASE for hair removal, and its ScleroPLUS for vascular lesions. Management also indicated that it is seeing expanded demand beyond its core market into other specialties such as ophthalmology ophthalmology (ŏf'thălmŏl`əjē), branch of medicine specializing in the anatomy, function and diseases of the eye. Ophthalmologists specialize in the medical and surgical treatment of eye disorders, vision measurements for and Ob/Gyn, and general practitioners, among others. |
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