UPDATE - Auriga Downgraded Yingli Green Energy (YGE) to Hold; Stepping Back After Recent Run-Up
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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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UPDATE - Auriga downgraded Yingli Green Energy (NYSE: YGE) from Buy to Hold, maintains price target of $5.00.
Auriga analyst said, "Price objective met; risk/reward argues for clarity on price/cost elasticity. Price Appreciation is Welcome, but let the ASP/cost dust settle in .With Yingli Green stock's year-to-date price appreciation at ~40%, we are taking a step back by cutting its rating to a Hold, while leaving the $5 PT intact. Yingli Green's cost structure is competitive but could get better if its polysilicon plant ramp delivers on costs. Meanwhile, a better grasp of its ASP/cost dynamic is needed (see industry note). Solar PV stocks currently are trading on survival economics (on x TBV, NOT earnings) and earnings are not likely until 4Q12 given that costs have yet to catch up with sharp ASP declines seen in 2011. We expect ASP declines to be less onerous in 2012."
Auriga analyst said, "Price objective met; risk/reward argues for clarity on price/cost elasticity. Price Appreciation is Welcome, but let the ASP/cost dust settle in .With Yingli Green stock's year-to-date price appreciation at ~40%, we are taking a step back by cutting its rating to a Hold, while leaving the $5 PT intact. Yingli Green's cost structure is competitive but could get better if its polysilicon plant ramp delivers on costs. Meanwhile, a better grasp of its ASP/cost dynamic is needed (see industry note). Solar PV stocks currently are trading on survival economics (on x TBV, NOT earnings) and earnings are not likely until 4Q12 given that costs have yet to catch up with sharp ASP declines seen in 2011. We expect ASP declines to be less onerous in 2012."
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