UPDATE: Deutsche Bank Initiates Coverage on SunEdison Semiconductor at Buy

In a report released Monday, Deutsche Bank initiated SunEdison Semiconductor

with a Buy with a $23 price target. The firm's Vishal Shah projects a recovery in semi-wafer demand influencing a bullish bet for SunEdison. The report focused on SEMI for cyclical growth because the company will highly benefit from the increase market share if demand does increase for semi wafers, its a lower cost competitor, and is credited for being one of the leaders for ASP specialty wafers. Shah stated wafer growth has outperformed GDP growth by 2.1x and have plenty of room for continuous growth. Although semi-wafer demand increased the industries average EBITDA growth, Shah does not feel the positive outlook is priced in to shares of SEMI. SEMI has signed a wafer supply contract with Samsung for 3 year use, potentially increasing SEMI's market share of Samsung by another 10 percent to 30 percent total. Deutsche Bank projects a 30 percent potential upside for shares of SEMI. Shares of SEMI are down nearly four percent in Monday's morning trading session.