Saturday, October 20, 2012

MEMC Slides; Hapoalim Says Sell

MEMC Electronic Materials (WFR) shares are coming under pressure this morning after Hapoalim Securities analyst Gordon Johnson cut his rating on the stock to Sell from Hold.

He contends the Street is over-estimating the first half profitability for the maker of silicon wafers; in particular he thinks his fellow analysts are “grossly over-estimating” margin leverage in the company’s SunEdison solar projects business.� He also thinks the Street is too optimistic on growth in the company’s semiconductor wafer business.

WFR today is down 61 cents, or 3.8%, to $15.64.

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