Axiom Calls Yingli "Wolf In Sheeps Clothing" (YGE)

Axiom Capital Research is out with a research report on Yingli Green Energy Hold. Co. Ltd. (ADR)

, and is negative on the stock. It's initiating coverage on the stock with a Sell rating and a $5 price target. In a note to clients, Axiom writes, "We see three key fundamental risks to YGE's story, which we expect to weigh on sentiment as the implications associated with the Czech's 26% retroactive tax on solar, & Germany's current installation weakness, become more broadly understood (i.e., underestimated minority interest expense by the Street [implying overstated forward EPS forecasts], YGE's industry leading 2011 capacity expansion into a weaker 1H11 [thus, straining cash flow & stretching enterprise value], & growing OPEX to support diversification out of Germany, thus limiting leverage in the model)" Shares of YGE lost 34 cents yesterday to close at $11.62.