Deutsche Bank Starts Yingli Green Energy (YGE) at Hold, Estimates Well Below Street
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Price: $1.43 --0%
Rating Summary:
2 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Deutsche Bank initiates coverage on shares of Yingli Green Energy (NYSE: YGE) with a Hold rating and $6 price target.
The firm believes that the thought of a lower guidance will continue to weigh on the shares and that the Street isn't calculating in the downside risk to volume/margin expectations into its estimates for 2012.
Deutsche still feels that the company will perform well in 2012 despite the very competitive market, but note that rising operating expenses and interest rate expenses will weigh on earnings.
An analyst at Deutsche comments, "We remain confident that the company's share gains in 2012 would likely exceed share gains realized in 2011, but even in a bull case scenario, we believe investors are unlikely to assume 20 percent share for YGE."
For 2012, the firm estimates 5 percent revenue growth with a 475 bps reduction in gross margins. EPS of $0.18 for 2012 is well below the Street's estimate of $0.80.
For more ratings news on Yingli Green Energy click here and for the rating history of Yingli Green Energy click here.
Shares of Yingli Green Energy closed at $4.14 yesterday.
The firm believes that the thought of a lower guidance will continue to weigh on the shares and that the Street isn't calculating in the downside risk to volume/margin expectations into its estimates for 2012.
Deutsche still feels that the company will perform well in 2012 despite the very competitive market, but note that rising operating expenses and interest rate expenses will weigh on earnings.
An analyst at Deutsche comments, "We remain confident that the company's share gains in 2012 would likely exceed share gains realized in 2011, but even in a bull case scenario, we believe investors are unlikely to assume 20 percent share for YGE."
For 2012, the firm estimates 5 percent revenue growth with a 475 bps reduction in gross margins. EPS of $0.18 for 2012 is well below the Street's estimate of $0.80.
For more ratings news on Yingli Green Energy click here and for the rating history of Yingli Green Energy click here.
Shares of Yingli Green Energy closed at $4.14 yesterday.
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