Nomura Securities Maintains a 'Reduce' on Yingli Green Energy (YGE); Margin Weakness; Obsession w/Market Share
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Price: $3.55 +14.52%
Rating Summary:
4 Buy, 17 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
4 Buy, 17 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade YGE Now!
Nomura Securities maintains a 'Reduce' on Yingli Green Energy (NYSE: YGE) price target of $3.00.
Analyst, Kitin Kumar, said, "Continuing the trend of losses, Yingli like its China-based peers today reported a 2Q12 net loss of RMB573mn, more than double our estimate. Yingli's module inventories are at an estimated 400~450MW. Our checks suggest that downstream customers in Europe are pushing for very short delivery times, necessitating inventory builds. With ASPs continuing to decline, we see this as a meaningful dampener on any near-term recovery in margins. Yingli’s balance sheet continued to deteriorate, with its net debt to equity rising 48.6pp q-q to 254.5%. While we like Yingli for its cost structure, we see the company's preoccupation with market share as detrimental to profitability and maintain our Reduce rating."
For an analyst ratings summary and ratings history on Yingli Green Energy click here. For more ratings news on Yingli Green Energy click here.
Shares of Yingli Green Energy closed at $1.85 yesterday, with a 52 week range of $1.50-$6.57.
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Analyst, Kitin Kumar, said, "Continuing the trend of losses, Yingli like its China-based peers today reported a 2Q12 net loss of RMB573mn, more than double our estimate. Yingli's module inventories are at an estimated 400~450MW. Our checks suggest that downstream customers in Europe are pushing for very short delivery times, necessitating inventory builds. With ASPs continuing to decline, we see this as a meaningful dampener on any near-term recovery in margins. Yingli’s balance sheet continued to deteriorate, with its net debt to equity rising 48.6pp q-q to 254.5%. While we like Yingli for its cost structure, we see the company's preoccupation with market share as detrimental to profitability and maintain our Reduce rating."
For an analyst ratings summary and ratings history on Yingli Green Energy click here. For more ratings news on Yingli Green Energy click here.
Shares of Yingli Green Energy closed at $1.85 yesterday, with a 52 week range of $1.50-$6.57.
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