UPDATE: Summit Research Initiates Coverage On SunEdison Semiconductor On Harvest Gains In 2016
In a report published Friday, Summit Research analyst Srini Sundararajan initiated coverage on SunEdison Semiconductor Ltd. (NASDAQ: SEMI) with a Buy rating and $30.00 price target.
In the report, Summit Research noted, "We are initiating SunEdison SEMI stock at a BUY with a price target of $30, based on 1.35x CY16 revenue est. of $925M (a low multiple vs. peers), compared to peer Sumco which trades at 2.61x based on TTM sales or 3.15 times consensus' 2016 sales. This is likely a stock that you BUY, put in a lockbox, and then sell when the time is right – it is like golden eggs that will hatch into many golden chickens. Leverage in the model is such that just a 1% GM increase in 2016 improves our EPS estimate from $0.40 to $0.61. Our long-term model is 5-10% revenue growth, 20-25% GM, EBITDA margin of 20-25%."
SunEdison Semiconductor Ltd. closed on Thursday at $25.38.
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