Goldman Sachs Upgrades MEMC Electronic Materials (WFR) to Buy; Near-Free Call Option on Solar

March 7, 2013 6:59 AM EST Send to a Friend
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Price: $8.07 --0%

Rating Summary:
    8 Buy, 7 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Goldman Sachs upgraded MEMC Electronic Materials (NYSE: WFR) from Neutral to Buy with a price target of $6.50 (from $4.00), calling it a call option in solar and unique sum-of-the-parts story.

"At its current valuation, we favor WFR's unique sum-of-the-parts story which, in our view, implies a near-free call option on solar given a steady-growth, cash-flow positive semiconductor segment that we estimate to be worth $5 per share on its own", the analyst said.

Catalysts cited by the firm include: Analyst Day on March 13; An improving semi cycle; Compelling SOTP; Upside to consensus EPS.

Goldman raised FY14 EPS from $0.47 to $0.50 and FY15 from $0.50 to $0.55.

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 $5.24 yesterday.




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