SunEdison Semi Shares Downgraded To Hold

In a report published Monday, analysts at WR Hambrecht & Co downgraded Sunedison Semiconductor Ltd (NASDAQ: SEMI) to Hold. The price target was reduced from $30 to $21. The analysts await greater clarity regarding the company's revenues, competition as well as news regarding the company itself.

"We hold the management in high esteem, however, the circumstances that they have been given needs to be turned around. We understand that given the leverage in the model and the high sensitivity to GM, it can and might turn on a dime, however, waiting has not been a strong suit of investors in today's market," the analysts said.

WR Hambrecht expects long-term debt financing to be on the cards for Sunedison. In addition, a merger with Sino-American and Siltron could prove beneficial to Sunedison. The merged entity would have the capacity to compete with larger players in the segment.

The company reported its C1Q15 revenues below the consensus, with in-line EPS. F3Q15 revenues declined 3.2 percent, quarter-on-quarter, largely driven by pricing pressure. The analysts, however, expressed their optimism regarding the company's performance during 2H.