Collins Stewart: SunEdison Remains Key for MEMC Electronic Materials

In a research report published this morning, Collins Stewart noted that SunEdison has positive business trends in CY12, maintaining its value for MEMC Electronic Materials Inc. WFR. In the report, Collins Stewart said, “The SunEdison division is forecast to post $471M of non-GAAP revenue on 108MW of system interconnections. The quarter is expected to be below our original forecast (revised on 1/18), as the company was unable to sell several Italian systems due to the sharp 4Q11 rise in interest rates. In addition, execution issues are believed to have held back US system sales. Management should explain both the shortfall and the economics of holding Italian system, receiving the cashflow from the feed- in-tariff while incurring carrying costs. Looking forward, the majority of SunEdison's backlog is the US and Canada, markets that both appear to have positive business trends in CY12.” Collins Stewart maintains its Buy rating and $5.50 PT on MEMC Electronic Materials, which closed yesterday at $4.72.