CIBC Oppenheimer

is well pleased with the new products that

ESC Medical Systems

(Nasdaq:ESCMF) is soon to launch. The investment bank accordingly reiterated its Buy recommendation and price target of $25, which is a huge 117% higher than the market price.

To recap, early this month ESC announced preliminary results for the fourth quarter of 2000. The company said that its revenues in the quarter will reach $46 million. Without getting specific, the company said it will meet analyst forecasts of 19 cents earnings per share. ESC's market price is $360 million.

Analysts John Calcagnini and David Tukaly find the valuation of the company very attractive because the company is traded at a multiple of 12 based on expected earnings for 2001.

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Although ESC said it feels comfortable with revenues of $46 million, the investment house believes that ESC's revenues will only reach $45 million and that EPS will come to 19 cents in the fourth quarter of 2000.

Going by ESC's forecasts, it is growing by 15% a year. Oppenheimer is optimistic about ESC's future and believes it will achieve 25% growth in 2003.

ESC develops medical and cosmetic applications based on intense pulsed light and laser technology. Its main applications are used for removing hair and pigmented and vascular lesions. Its most recent product, OtoLam, is intended to replace the tubes inserted into the ears of children suffering from chronic ear infections. ESC is expected to launch its new products in the course of 2001. The analysts believe that the new products will generate growth and boost ESC shares, which peaked at $20 during 2000. Today ESC shares trade at $11.5.

Other new products are acne treatment ClearLight, which has a potential market of $250 million a year, and Variclose, a catheter system with an annual revenue potential of $500 million.

The bank expects that ESC will post earnings of $17.4 million or EPS of 61 cents in 2000, and that revenues will come to $160.7 million.

The company's results in 2001 are expected to improve. Profits are predicted to reach $29.4 million, EPS $1, and revenues are expected to come to $194.5 million.