Summit Research Downgrades SunEdison Semiconductor (SEMI) to Hold

Summit Research earlier downgraded SunEdison Semiconductor (NASDAQ: SEMI) from Buy to Hold with a price target of $21.00 (from $30.00). Analyst Srini Sundararajan pointed to lack of clarity on revenue and competition.

"We still feel that SEMI is likely a stock that you buy, put in a lockbox, and then sell when the time is right - it is like golden eggs that will hatch into many golden chickens. However, after the current print and after doing further work on its competitors, we Do Not Know When the timing will be right. Hence we move the ating to HOLD pending better clarity on revenues, competition and SEMI itself (i.e. will it be 2H16 when one can expect $20 poly from SMP?) as we feel that the money can meanwhile be employed gainfully somewhere else," said Sundararajan.

"Our price target moves to 1X C16 revenue per share at $21. We hold the management in high esteem, however, the circumstances that they have been given needs to be turned around. We understand that given the leverage in the model and the high sensitivity to GM, it can and might turn on a dime, however, waiting has not been a strong suit of investors in today's market," added the analyst.

For an analyst ratings summary and ratings history on SunEdison Semiconductor click here. For more ratings news on SunEdison Semiconductor click here.

Shares of SunEdison Semiconductor closed at $21.83 yesterday.

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