UPDATE: Citigroup Upgrades Cynosure to Buy

Citigroup upgrades Cynosure

from Buy to Neutral and raises its price target to $22 from $13 on notable improvement reflected in the fourth quarter results. Citigroup says, "Sales of $34.1MM (+52%) rose 15% on an organic basis and were $2MM ahead of our expectations. R&D (8.3% of sales) and SG&A (43.8% of sales) were a combined $1MM below our forecast and combined with sales led to OP arriving $2MM ahead of our forecast. EPS of $0.11 compared to our estimate of a $0.06 loss and was the first positive quarter since 3Q08. All of the upside came in the North America (

) laser business which rose 46% on an organic basis." CYNO closed at $16.44 a share on Tuesday.