MEMC Electronic Materials (WFR) Gets Buy Rating from Collins Stewart

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10:28:29 am on November 12, 2008

According to, Collins Stewart has initiated coverage on MEMC Electronics (WFR) with a BUY rating and price target of $27.  The firm believes the departure of CEO Nabeel Gareeb is bullish in that it may open up more long term relationships.  They said:

“… the company’s $6.18 in net cash and potential to deliver $2.58 GAAP EPS in FY10 under a stress test forecast should provide support at current levels…CEO Nabeel Gareeb resigned on 10/30/08. We believe his departure will allow the company to take a more pragmatic approach to pricing long-term wafer supply agreements. Our checks indicate that many solar customers are interested in long-term relationships with MEMC, but that its pricing policy in the past has, effectively, priced it out of the market. Our checks also indicate that MEMC is meeting with established solar companies in the weeks ahead, presumably regarding supply agreements. Signing new supply agreements would act as a catalyst for the shares.”

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