From Standard & Poor's Equity Research
RBC Capital started covering MEMC Electronic Materials (WFR
) at outperform, noting the company's salesforce strategy shift.
Analyst Stuart Bush says the new strategy allows the company to extract higher margins in a high growth market. He believes focusing on wafers instead of solar cells or modules ensures margin security. He notes that company's superior pricing power in the short term and margin extraction in the solar market in long term. He sees $1.71 2006 earnings per share (EPS) and $1.97 in 2007.