Yingli Green Energy (YGE) Could See H214 Ramp; Roth Capital Keeps at 'Neutral'

Roth Capital affirms its Neutral rating and $4 12-month price target on Yingli Green Energy (NYSE: YGE) following Q1 results and guidance issued earlier today.

Analyst Philip Shen noted that Q1 results fell inline with the company's pre-announcement in April.

On YGE's outlook, Shen commented, Q2 shipment guidance was light at 870-950-MW (including 30-60-MW shipped to downstream projects) vs. prior ROTHe of 980-MW (including 100-MW shipped to downstream projects) and the company expects Q2 GMs of 14-16% vs. prior consensus of 16.0% and prior ROTHe of 14.8%. Management reiterated 2014 shipment guidance of 4.0-4.2GW (including 400-600-MW shipped to downstream projects).

Shen is also positive on the back-half of 2014, saying, YGE shipped 6-MW to its own projects in Q1. YGE started construction of ~155-MW of projects in Q2, ~30% of its 2014 target (400-600-MW). We currently model project installations of 16-MW in H1’14 and 484-MW in H2’14 vs. prior ROTHe of 125-MW and 375-MW, respectively. Additionally, we expect YGE to recognize 238-MW of project revenue in H2’14, inline with prior ROTHe. We note that YGE’s decision on a build and hold development model vs. a build and sell model will continue to materially affect our estimates in 2014 and 2015.

For an analyst ratings summary and ratings history on Yingli Green Energy click here. For more ratings news on Yingli Green Energy click here.

Yingli Green Energy closed at $3.52 yesterday.

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