Auriga Maintains Sell Rating and $2 PT on Yingli Green Energy Holding Co.

A report from Auriga reiterates its Sell rating and $2 price target on Yingli Green Energy Holding Co. YGE. The report states, “The company's polysilicon plant is a white elephant that is set to ramp in 2012 with cost set at $45/kg for 1Q12 and $35/kg for 2H12 compared to current spot polysilicon prices at ~$30/Kg and trending lower. Given high cost structure and capacity (3,000MT) that is not optimized for scale, we believe Yingli will likely exit from its polysilicon business in 2012.” YGE closed Friday at $3.81.