Citi Maintains Buy Rating On MEMC Electronic Materials

According to Citi, MEMC Electronics Materials WFR Buy rating is maintained. Citi said that number-wise, it's hard to argue the cut was more benign than expected as new 2011 EPS guide is now ~$0.55-0.65 when adjusting for benefit from the STP settlement – a number lower than most previews it saw (it previewed $0.70). “Near-term, because it still “sells” 4x the volume into the channel at compressing prices than it “buys” out the back-end, declining prices have been bad for EPS.” MEMC Electronics Materials closed yesterday at $6.99.