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Upgrades / Downgrades - Barclays Lowers Estimates on Yingli Green Energy
Jul 06, 2009 (SmarTrend(R) Upgrades/Downgrades via COMTEX) --
Yingli Green Energy (NYSE:YGE) earnings estimates and price target were lowered at Barclay Capital. Barclays' analyst Vishal Shah says his checks suggest that module players are offering floating price contracts with 180-day price protection to gain market share. Shah sees higher risks of write-downs due to the sharp declines in module prices. In addition, Shah sees increased competition entering the market priced below $2/W, which will likely drive down Yingli Green Energy's average selling prices (ASPs). In conclusion, Barclays is lowering 2009 estimates from $0.40 to $0.36 and 2010 estimates from $1.25 to $1.10. Estimates for second half 2009 were based on a higher ploy price of $93/kg versus the previous estimate of $90/kg. Shah sees the increased cost of raw materials cutting into the company's gross margins. Barclays Capital currently rates the shares Overweight, but has reduced its price target to $16.50 from $18.00.
Write to Chip Brian at cbrian@tradethetrend.com
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