UPDATE: Mirae Asset Lowers PT to $2.85 on Yingli Green Energy on Polysilicon Cost Concerns
Mirae Asset reiterates its Hold rating on Yingli Green Energy (NYSE: YGE) and reduces its price target from $3.50 to $2.85.
Mirae Asset comments, "Yingli Green's higher polysilicon procurement costs, together with its increasing exposure to the lower ASP China market could result in gross margin pains ahead. The company's successful Rmb1.5bn medium-term note should help alleviate near-term liquidity concerns, especially in light of Yingli's capital intensive expansion strategy for 2012. Yingli Green delivered an impressive 44% QoQ shipment growth in 1Q12, beating expectations, but cautioned for a slowdown in 2Q, while maintaining strong 2H growth expectations driven by Chinese installations."
YGE closed at $2.61 on Thursday.
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