In a research report sent to investors, Roth Capital analyst Philip Shen reiterated a Neutral rating on Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) and lowered the price target from $2.10 to$1.30. The report was issued after the company posted mixed first quarter earnings, issued a weak second quarter guide, and lowered its full year shipment target. Shares of YGE are currently trading at $1.31, up $0.25, or 23.58%.
Shen commented, “The market is focused on YGE’s ability to meet its debt service requirements, and it appears YGE will be able to repay RBM1bn due on its medium-term notes in Oct’15. The next payment (RMB1.4bn) is due mid-2016, and we believe management has a path to meeting these requirements as well. Maintain Neutral as YGE works to resolve debt burden.”
In addition, “We lower our 2015 shipment forecast to 3.5GW vs. prior ROTHe of 3.6GW given YGE’s lower 2015 shipment guidance of 3.6GW vs. prior guidance of 3.6-4.0GW. As a result, we reduce our 2015 revenue forecast to $2.3bn vs. prior consensus of $2.6bn and prior ROTHe of $2.5bn. Due to the lower-than-expected Q1 GMs, and management’s indication that Q2 GMs could be slightly lower than Q1, we pare down 2015 GMs to 14.4% vs. prior consensus of 15.9% and prior ROTHe of 16.2%.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Philip Shen has a total average return of -4.3% and a 41.2% success rate. Shen is ranked #3413 out of 3612 analysts.
Out of the 5 analysts polled by TipRanks, 2 rate Yingli Green Energy Holding stock a Hold, while 3 rate the stock a Sell. With a return potential of 61.16%, the stock’s consensus target price stands at $1.95.