Auriga Maintains a 'Buy' on MEMC Electronic Materials (WFR); Suntech Divorce Settlement Doesn't Count for Earnings

Auriga maintains a 'Buy' on MEMC Electronic Materials (NYSE: WFR) price target of $11.00.

Auriga analyst says, "MEMC reduced its 2011 guidance as expected given pricing dislocation across the solar PV sector in 2Q11 and 3Q11 . New 2011 revenue guidance is $100M lower at $3.3B to $3.6B, with normalized EPS range at $0.11 to $0.31 (excluding $0.75 in Suntech settlement: $0.65 in 2Q11 + $0.10 in 2H11, and restructuring charges of $0.06) compared to $1.00 to $1.30 earlier. Our 2011 EPS estimate is now $0.30 lower at $0.30, while 2012 and 2013 EPS estimates remain intact (lower solar wafer, better margins at semi wafer & SunEdison) at $0.80, and $1.30, respectively. While solar wafer business is coping with the expected pricing pressure, semi wafers and SunEdison business have shown operational improvement and will likely gain further traction (pricing, margin) in 2H11 and beyond . Given compelling valuation we maintain our rating."

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 $6.99 yesterday.

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