Zacks Investment Research upgraded shares of MEME Electronic Materials (WFR) from UNDERPERFORM to NEUTRAL on October 18, 2012, with a target price of $2.50.
MEMC posted an impressive second quarter with both the top and bottom lines surpassing the Zacks Consensus Estimates. The improvement was solely based on higher solar systems sales. Considering the current market trend, it is difficult to predict whether the Solar Energy segment will sustain its growth momentum. The company itself seems dubious about the environment, which can be easily inferred from a weak third quarter guidance. Management's commentary of expecting a better demand/supply situation in the semiconductor market and overall expense control are encouraging. Though high debt burden and solar tariff cuts are concerns, solar system sales trajectory looks impressive. We upgrade the stock from Underperform to Neutral.
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