[Dow Jones] Manufacturers of solar wafers, a key component of crystalline-silicon solar panels, are currently seeing historically low average returns, but margins are likely to improve later this year if solar-panel and solar-cell manufacturing capacity expands faster than wafer manufacturing capacity, says BarCap analyst Vishal Shah. "Given the potential tightness in the wafer market, we expect excess returns to increase during 2010, whereas excess returns in the module/cell segment could potentially decline," he says. Shah upgrades wafer maker LDK Solar Co. Ltd. (LDK) from underweight to equalweight, boosts stock-price target to $7 from $4; LDK shares recently up 4.2% at $7.63, up 16.6% over week. Shah raises Renesola Ltd. (SOL) price target to $9 from $7; shares recently up 0.6% at $6.46. Shah also raises MEMC Electronic Materials Inc. (WFR) price target to $16 from $15; shares recently up 2.8% at $16.40. ([email protected]) Contact us at 415-439-6468.