UPDATE: CICC Downgrades Yingli Green Energy; Lowers PT

According to a research report published this morning, CICC has downgraded Yingli Green Energy (NYSE: YGE) from Buy to Hold and lowered PT to $3.00.

In the report, CICC said, "YGE is fully aware that its China-focused strategy will leave it extremely susceptible to pricing pressures, yet it bets on the volume being large enough to warrant a profit on an EBIT level. While the visibility on shipments has been favorable, the management is somehow reluctant to give a clear roadmap for silicon cost reductions. We see YGE's slower margin recovery as a major overhang to share performance over the next 6~12 months and believe it no longer deserves a BUY rating, which was largely based on anticipated solid cost leadership after posting a US$135.3mn provision on long term poly supply contracts in 4Q11."

Yingli Green Energy is currently trading at $2.55.