UPDATE: Goldman Sachs Reduces PT to $0.80 on Yingli Green Energy on Credit Risk

Goldman Sachs reiterated its Sell rating on Yingli Green Energy

and reduced its price target from $2 to $0.80. Goldman Sachs commented, "High gearing ratio indicates potential credit risk; (2) High SG&A expense impacts earnings outlook. … Director's Cut-based 12-month target price of US$0.8. Adjusting down TP to reflect our expectations of further ASP erosion and a continued industry down-cycle. Key upside risks: Higher-than-expected ASP, shipments and global demand; better-than-expected cost structure reduction." Yingli Green Energy closed at $1.73 on Monday.