Solar PV Technology
MEMC Electronic Materials, Inc. (WFR) - Hold - EPS Change.

MEMC reported weaker 3Q10 results due to lower than expected revenue from SunEdison and weaker margins. While the company suspended its 2010 earnings guidance, commentary suggests 4Q10 revenue will be very strong assuming the company can complete and connect ~120MW of solar projects within the quarter. While both semi and solar wafer businesses are tracking better, margins remain somewhat disappointing. We believe the uncertainty on 4Q10 earnings and 2011 outlook will continue to weigh on the stock, we await signs of improvement on solar wafer costs and better visibility on SunEdison's project timing before revising our rating.