UBS Maintains a 'Buy' on MEMC Electronic Materials (WFR); SunEdison is Solid but Solar Remains Weak

UBS maintains a 'Buy' on MEMC Electronic Materials (NYSE: WFR) price target lowered from $10 to $8.

UBS analyst says, "Lowers 2011 sales/EPS guidance on solar writedown & solar operating loss - MEMC’s 3Q11 sales of $859M were 10% higher than expected given strong SunEdison solar project sales (46% of total) which saw pipeline grow 20% q/q to 3GW (925MW have power purchase agreements). MEMC’s 3Q11 EPS loss of -$0.22 was below our $0.09 estimate as it wrote down $56M or -$0.25 in EPS for its Solaicx solar wafer business (acquired in May-10 for $104M). Excluding the writedown, we estimate its solar wafer segment had an operating loss of -$9M."

"MEMC still guided 2011 sales to $3.5B but EPS much lower at $0.26 versus $0.90 previously. Our new 2011, 2012 and 2013 EPS are $0.50, $0.75 and $1.00 versus $0.75, $0.95 and $1.10 previously. MEMC has missed 9 of the past 12 quarters on consensus EPS but we believe its 4Q11 EPS guidance of $0.10 appears beatable."

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.

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