Piper Jaffray Removes Yingli Energy (YGE) from Alpha List

May 15, 2008 1:48 PM EDT

Piper Jaffray removes Yingli Green Energy (NYSE: YGE) from its Alpha List following the company's earnings report, which came out this morning before the market opened. The firm maintains a Buy rating on Yingli and lowers its price target from $65 to $60.

The firm said that "higher ASPs and sales diversification from Spain that we had anticipated have come to fruition." Piper believes that Yingli's management is developing a reputation for issuing conservative guidance in order to consistently beat expectations.

Interestingly, the firm mentioned that it feels that the Street is currently pricing solar stocks based on FY08 estimates, rather than FY09. Piper believes this sentiment could change over the summer and with Yingli trading at about 10x the firm's FY09 estimates, Piper calls Yingli shares "some of the best risk reward in the group."

If investors had bought shares of Yingli on the Piper recommendation before the market opened on the day they released the original report, April 3, they would be bagging a quick 31% if they sold today.

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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