Here are highlights from Thursday's Analyst Blog:

WFR Starting to Heat Up

We are reiterating our Buy rating on the shares of MEMC Electronic Materials, Inc. (NYSE: WFR). The company produces the raw material wafers used by semiconductor manufacturers in the production of integrated circuits (ICs).

WFR presently trades at a multiple of 8.9x our estimate of 2009 earnings (P/E). We expect the firm to outgrow the general semiconductor industry based on its 300 millimeter product line and its solar business. The firm's balance sheet has improved dramatically and cash now stands north of $1 billion. This should pave the way for future share buybacks and potential mergers in the solar industry.

Kookmin Bank Upped to Hold

We are raising our rating on Kookmin Bank (NYSE: KB) to Hold from Sell as the stock has exceeded our target price, which remains $50. KB is expected to report third quarter results in late October. We are retaining our EPADS estimates at $7.55 for 2008 and at $8 for 2009.

We expect pressure on the net interest margin to offset loan growth, with only lackluster earnings growth over the near term. KB reported second quarter net earnings of KRW644 billion, down 10% from the KRW718 billion earned in the prior-year quarter, primarily reflecting higher loss provisions. Plans to convert into a holding company structure appear on track. KB cut its annual dividend by one-third in-line with its strategy to reduce the payout ratio to 30% from 50%.

Shanghai Petrochem Nears Ceiling

Shanghai Petrochemical's (NYSE: SHI) exposure to the fast-expanding Chinese economy and strong petrochemical product demand make us confident of strong volume growth. However, revocation of government price controls in the future, higher crude oil prices and increased competition are some of the major concerns for the company.

As expected, the company's first half 2008 net profit declined by more than 50% from the year-ago period. The company expects profits to fall further in the second half of the year. Thus, we rate the stock a Hold with a six-month target price of $33.

Joy Global's Reason to Smile

We maintain our Buy recommendation on Joy Global, Inc. (Nasdaq: JOYG) as the strength in the global coal markets show no signs of weakness. Although margins will be impacted slightly in the near term due to the start up of the P&H factory in China and from lower operating margins from its Continental acquisition, we see the company continuing to benefit as a global leader in mining equipment and services.

The company continues to see strong demand for its equipment across all geographic regions it serves as producers look to expand and ramp up production to capitalize on the persistent global growth in demand for electricity and steel.

Alexza Pharma Down the Road

We are enthusiastic on Alexza Pharmaceuticals, Inc.'s (Nasdaq: ALXA) proprietary novel Staccato system that reformulates oral or injectable small molecule compounds into an inhalable aerosol. The development pipeline is moving forward nicely in our view. The recent positive phase III data on AZ-004 is a significant milestone for the company.

Alexza has six product candidates in clinical stage trials; including leading candidates AZ-001 for migraine headache pain relief and AZ-004 for acute agitation in patients with schizophrenia. Recent data on both drugs lead us to believe the Staccato system is both safe and highly effective. By 2011 both AZ-001 and AZ-004 could be on the market, or at least under regulatory review.

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