J.P. Morgan Downgrades MEMC; Concerned about Capacity Levels, Pricing, Subsidy Reductions

4/30 - "MEMC Electronic Materials (WFR) shares are down sharply today after J.P. Morgan analyst Christopher Blansett cut his rating on the stock to Neutral from Overweight...Blansett wrote in a research note this morning that the polysilicon wafer supplier “faces increasing near-term headwinds given the high Street expectations and very tight capacity expansion schedule over the next few quarters.”

"He also says that erosion in semi wafer pricing “implies that supply tightness is not as severe as before and that semi customers are pushing back and gaining concessions.” He thinks MEMC rivals Shin-Etsu and SUMCO are “chasing market share and negatively impacting margins for everyone competing in the market...Another factor weighing on the stock, he says, is the pending reduction in Europe of reduced subsidies for the solar sector."