UPDATE: Goldman Sachs Upgrades MEMC Electronic Materials to Buy; A Free Call on Solar

Goldman Sachs upgraded MEMC Electronic Materials

from Neutral to Buy and announced a $6.50 price target. Goldman Sachs commented, "At its current valuation, we favor WFR's unique sum-of-the-parts story which, in our view, implies a near-free call option on solar given a steady-growth, cash-flow positive semiconductor segment that we estimate to be worth $5 per share on its own. And while WFR shares have rallied, we see multiple ways to realize further upside on the back of: (1) leverage to a potential 2H13 recovery in semi volumes, (2) a diversified and high-value mix of solar project assets with outsized exposure to N. America, and (3) potential to unlock value via SOTP." MEMC Electronic Materials closed at $5.24 on Wednesday.