Hapoalim Says Results From Yingli Green Energy May Not Last (YGE)

Hapoalim Securities is out with a research report on Yingli Green Energy (NYSE: YGE) after the solar panel maker reported earnings. It has a $8 price target and a Sell rating on shares.

In the research report, Hapoalim Securities notes, "Benefitting from strong demand and pricing, YGE’s solid 2Q10 results exceeded our and Street estimates across the board. Though ASPs declined only slightly in the quarter, its long -term contracts are expected to lead to price declines of ~(5%) in 3Q10, as ramp-up costs from its capacity expansion are likely to keep 2H10 production costs elevated. While we are raising our 2010 estimate on a stronger Euro and slightly higher shipment assumptions, we believe this may represent a peak quarter for YGE and continue to expect earnings to decline in 2011 on deteriorating price trends."

Shares of Yingli Green Energy closed at $10.77 yesterday.