UPDATE: Citigroup Initiates MEMC Electronic Materials at Buy on Wafer Pricing Outlook

Citigroup initiated MEMC Electronic Materials WFR with a Buy rating and a $5.40 price target. Citigroup commented, "Our favorable outlook on WFR shares is predicated on: (1) solid growth prospects at SunEdison – WFR's tech agonistic project development solar business and (2) demand/pricing improvement in the semi 300mm wafer segment in 2013 as highlighted by Citi Analyst Takao Kanai. That said, the solar segment is the key area of growth for us. With our favorable sector tilt towards downstream players in the solar space (vs. upstream manufacturers), we believe SunEdison is well positioned to capitalize on emerging growth opportunities in the US and oversees sustainable markets." MEMC Electronic Materials closed at $4.22 on Tuesday.