MEMC Electronic Materials (WFR) shares are getting a modest lift today from Wunderlich Securities analyst Theodore O’Neill, who raised his rating on the stock to Buy from Hold, “based on both valuation and our confidence in rising revenue in its core business.”
He notes that the stock came under pressure last week after Q1 results, disappointing investors with a loss due to lower margins. But he adds that “the current valuation at 3x cash appears to offer more upside potential than downside risk.”
The analyst adds that management has “put its reputation on line,” asserting that it plans price increases for each of the next two quarters.”
His target for the stock is $15.
Amid generally lower tech stock prices, WFR is up a penny at $11.89.
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