Gilford Securities Reiterates Hold Rating on MEMC Electronic Materials (WFR)

Gilford Securities is out with a research report this morning, where it reiterates its Hold rating on MEMC Electronic Materials WFR; it has a $5.50 price target on the stock. The GS analysts cited the company's recent acquisition of SunEdison (Solar power plant developer), noting that it is a positive and a brave move by essentially a polysilicon/wafer vendor. The analyst added that the new model needs to be battle tested through different phases of the solar cycle in order to be rewarded by investors. As for valuation, the analysts remarked, “We are adjusting our GAAP EPS estimate for 2011 from $0.47 to $0.37 for 2012 from $0.68 to $0.60. Our GAAP sales estimate for 2011 is $3,043 MM.”