CS First Boston upgraded Steiner Leisure (STNR) to strong buy from hold.
Analyst Scott Barry says the company recently made two acquisitions, transforming Steiner into a potential market leader in the spa services business. He says he visited some
sites, met with management, and thinks the company has the platform to address the $6 billion market opportunity in the U.S. alone.
Barry notes the market is highly fragmented and devoid of any brands with scale. Therefore, he thinks Steiner can execute successfully against that market. Barry sees $1.45 2001 EPS, and $1.80 2002 EPS. He set a $35 target.