Kaufman Bros. Reiterates a 'Buy' on MEMC Electronic Materials (WFR); Analyst Day Takeaways
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Price: $8.07 --0%
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Kaufman Bros. reiterates a 'Buy' on MEMC Electronic Materials (NYSE: WFR), PT $13.50.
Kaufman analyst says, "We attended WFR's Analyst Day yesterday and are
encouraged by the company's overall strategy. The focus in 2011 is geared toward reducing costs. WFR indicated that it believes it can be the low-cost manufacturer in each of its business segments. While we can certainly approve of its cost reductions strategies of moving production to low-cost areas and leveraging its proprietary technologies, we think these plans would have generated more excitement if WFR indicated current costs for polysilicon, solar wafers, and semiconductor wafers. In addition, where it expects costs to be over the next couple of years. In any case, we do believe WFR will be able to achieve significant cost reductions that should be enhanced by a volume pick-up. Unfortunately, these cost reductions will not be transparent and will only be demonstrated by the expected continued improvement in segment operating margins. In our opinion, this could prevent the shares from being revalued upward until WFR reports a series of improving quarterly results."
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 $11.01 yesterday.
Kaufman analyst says, "We attended WFR's Analyst Day yesterday and are
encouraged by the company's overall strategy. The focus in 2011 is geared toward reducing costs. WFR indicated that it believes it can be the low-cost manufacturer in each of its business segments. While we can certainly approve of its cost reductions strategies of moving production to low-cost areas and leveraging its proprietary technologies, we think these plans would have generated more excitement if WFR indicated current costs for polysilicon, solar wafers, and semiconductor wafers. In addition, where it expects costs to be over the next couple of years. In any case, we do believe WFR will be able to achieve significant cost reductions that should be enhanced by a volume pick-up. Unfortunately, these cost reductions will not be transparent and will only be demonstrated by the expected continued improvement in segment operating margins. In our opinion, this could prevent the shares from being revalued upward until WFR reports a series of improving quarterly results."
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 $11.01 yesterday.
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