Ardour Capital and Auriga weighed in on Yingli Green Energy (YGE) this morning following its earnings report yesterday.
Ardour Capital downgraded from Buy to Hold and cut the price target from $16 to $10.
Auriga maintains its Buy rating, but cut the price target from $18 to $14. They acknowledge the strong quarter and guidance, but remain concerned about the impact of the free falling Euro and have adjusted their estimates to account for a declining Euro. Their estimates are based on a 1.25 USD/EUR exchange rate with 50% of Yingli sales coming from Europe at 40% hedged. The FY11 GAAP EPS estimate has been lowered from $1.21 to .92.
Shares of YGE are down about 6% today and retesting the lows, but I continue to believe that YGE and several other solar names are bottoming out (at least in the shorter term) and poised for a decent relief rally in the coming weeks. The same could be said for the Euro which is probably due for a recovery.