Auriga Maintains a 'Buy' on MEMC Electronic Materials (WFR); Valuation the Real Issue
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Price: $8.07 --0%
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Auriga maintains a 'Buy' on MEMC Electronic Materials (NYSE: WFR) price target of $7.00.
Analyst, Hari Chandra, said, "MEMC's performance in 1Q12 was subpar; the revenue beat came on one-time polysilicon sales, while in-line non-GAAP EPS had a $0.13 tax benefit from SunEdison. Revenue guidance for 2012 was trimmed from lower semi wafer sales (-2% to -5% vs. flat earlier; cyclical bottom called) and ASP/Wdc trim (to > $3.50 from $3.75) on solar projects entails revenue trim (see below). We believe MEMC's operational execution will improve both in quality and quantity through the year as cost benefits (both input and operational) accrue from its $1.4B restructuring of 4Q11. With the benefit of time/experience, we believe MEMC's cost focused, asset-lite, and flexible business model will deliver much more in 2013. Valuation is the REAL issue; after its recent purgatory, MEMC business model is more nimble but suffers from perception drag on its non-recourse debt (management noted it will address the issue)."
For an analyst ratings summary and ratings history on MEMC Electronic Materials click here. For more ratings news on MEMC Electronic Materials click here.
Shares of MEMC Electronic Materials closed at $3.25 yesterday.
Analyst, Hari Chandra, said, "MEMC's performance in 1Q12 was subpar; the revenue beat came on one-time polysilicon sales, while in-line non-GAAP EPS had a $0.13 tax benefit from SunEdison. Revenue guidance for 2012 was trimmed from lower semi wafer sales (-2% to -5% vs. flat earlier; cyclical bottom called) and ASP/Wdc trim (to > $3.50 from $3.75) on solar projects entails revenue trim (see below). We believe MEMC's operational execution will improve both in quality and quantity through the year as cost benefits (both input and operational) accrue from its $1.4B restructuring of 4Q11. With the benefit of time/experience, we believe MEMC's cost focused, asset-lite, and flexible business model will deliver much more in 2013. Valuation is the REAL issue; after its recent purgatory, MEMC business model is more nimble but suffers from perception drag on its non-recourse debt (management noted it will address the issue)."
For an analyst ratings summary and ratings history on MEMC Electronic Materials click here. For more ratings news on MEMC Electronic Materials click here.
Shares of MEMC Electronic Materials closed at $3.25 yesterday.
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