UPDATE: Citigroup Initiates Yingli Green Energy at Neutral on High Leverage to Industry

Citigroup initiated coverage on Yingli Green Energy

with a Neutral rating and a $3.50 price target. Citigroup noted, "As a quality Tier 1 pure-play panel manufacturer in China, YGE is highly leveraged to a recovery in the sector as the industry S/D tightens over the next few years. That said, the industry is not only going through a cyclical trough but structural headwinds as well – mainly the commoditization of the modules business. Hence, our favorable stance towards more downstream players versus upstream manufacturers. We remain on the sidelines on challenging industry fundamentals." Yingli Green Energy closed at $3.17 on Tuesday.