Kaufman Bros. Cuts Price Target on MEMC Electronic Materials (WFR) Following Earnings
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Price: $7.21 --0%
Rating Summary:
8 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 0
Rating Summary:
8 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 0
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Kaufman Bros. is maintaining its Hold rating on shares of MEMC Electronic Materials (NYSE: WFR) and is lowering its price target from $7 to $5 following the release of its third quarter results.
The company reported sales that beat expectations, but earnings did miss. The firm notes the year over year comparison isn't that creditable as last quarters results include favorable impacts outside of operations. The company's results are actually inline with the overall solar trend.
An analyst at Kaufman comments, "We believe WFR will continue to face industry headwinds as we move into 2012. Oversupply across the supply chain coupled with weak demand should continue to impact the Solar Materials and SunEdison segments while the Semiconductor Materials segment is also experiencing a cyclical slowdown. Our pricing assumptions for 2012 decline less aggressively as compared to what we have seen thus far in 2011, but still represent a significant obstacle to growth."
The firm currently estimates solar pricing will decline by 10 percent in 2012 as volumes see a 10 percent increase. SunEdison should also become a larger segment for the company's operations.
For 2011 and 2012, Kaufman forecasts EPS of ($0.35) and ($0.09).
For more ratings news on MEMC Electronic Materials click here and for the rating history of MEMC Electronic Materials click here.
Shares of MEMC Electronic Materials closed at $5.78 yesterday, with a 52 week range of $4.58-$15.04.
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The company reported sales that beat expectations, but earnings did miss. The firm notes the year over year comparison isn't that creditable as last quarters results include favorable impacts outside of operations. The company's results are actually inline with the overall solar trend.
An analyst at Kaufman comments, "We believe WFR will continue to face industry headwinds as we move into 2012. Oversupply across the supply chain coupled with weak demand should continue to impact the Solar Materials and SunEdison segments while the Semiconductor Materials segment is also experiencing a cyclical slowdown. Our pricing assumptions for 2012 decline less aggressively as compared to what we have seen thus far in 2011, but still represent a significant obstacle to growth."
The firm currently estimates solar pricing will decline by 10 percent in 2012 as volumes see a 10 percent increase. SunEdison should also become a larger segment for the company's operations.
For 2011 and 2012, Kaufman forecasts EPS of ($0.35) and ($0.09).
For more ratings news on MEMC Electronic Materials click here and for the rating history of MEMC Electronic Materials click here.
Shares of MEMC Electronic Materials closed at $5.78 yesterday, with a 52 week range of $4.58-$15.04.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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