Piper Jaffray Cuts Price Target on Yingli (YGE) from $26 to $15
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Piper Jaffray lowers its price target on Yingli Green Energy Holdings (NYSE: YGE) from $26 to $15, but maintains a Buy rating.
The firm cut estimates on Yingli, citing "rapid depreciation of the euro vs. USD and resulting supply chain dislocation..." which will create weak Q4 earnings throughout the entire solar sector. On the other hand, Piper believes that Yingli's "access to lower cost poly" will position the company to maintain margins better than the majority of the solar companies.
Piper cuts Yingli's average selling price from $3.66/w to $3.47/w and as a result, the firm also cut the company's Q4 MW estimates from 81MW to 75MW. Piper also lowered its FY08 and FY09 EPS estimates on Yingli from $1.04 and $1.97 to $0.96 and $1.47, respectively.
With shares of Yingli trading around $5.11 today (down 11.4% for the session), Piper's lowered price target represents potential price appreciation of nearly 200% from current levels.
Yingli Green Energy Holding Company Limited and its subsidiaries engage in the design, development, marketing, manufacturing, installation, and sale of photovoltaic (PV) products.
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Credibility of PJ
The report forgot to mention that the current price level of Yingli (5,25) is 92% off Mr Pichel's price target as of May 12, 2008. https://piper.bluematrix.com/bluematrix/utilities/client_specific/piper_COI_ATR?id=3010 . Interesting to mention is also Mr Pichel's view on LDK. According to https://piper.bluematrix.com/bluematrix/utilities/client_specific/piper_COI_ATR?id=3002 ... on Sep 04, 2008 EPSe for 2008 was 2,69. As of Oct 07, 2008 it was still 2,69, but the price target was reduced from 44 to 27. Pichel's target rates to not matter at all to me. What does matter to me is that his estimations are based on false data. Mr Pichel obviously missed that LDK issued 4,8 Mio shares on Sep 24, 2008. So this alone is proof enough that this guy is of no substance. If the EPS estimates stayed unchanged he obviously didn't adjust the share count, which in essence makes everything garbage.
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yingyang on Nov 7, 2008 10:28 AMAGREED. And it's up again today, I dont think anyone is reading the lies anymore :)