SunEdison (SUNE) Successfully Unlocking Value with SEMI IPO - Needham & Company

Needham & Company analyst Y. Edwin Mok reiterated a Buy rating and $22 price target on SunEdison (NYSE: SUNE) as the successful IPO of SunEdison Semiconductor (NASDAQ: SEMI) confirms execution of plan to unlock value.

Mok said "We believe the successful completion of the IPO of SUNE's semiconductor wafer business (SEMI, N/R) is a small but incrementally positive step for SUNE. While the deal was priced below its target and only raised ~$190MM (after fees), it was done in the face of SEMI's weak 1Q14 results and a slow equity IPO market. We believe the transaction confirms that management is able to execute its plan to unlock company value, which should ultimately include the yieldco IPO and other transactions related to polysilicon and wafer manufacturing IPs. The stock has outperformed the solar peer group, and we expect more positive catalysts in the coming months to drive the share price higher."

For an analyst ratings summary and ratings history on SunEdison click here. For more ratings news on SunEdison click here.

Shares of SunEdison closed at $19.03 yesterday.

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