Yingli Green Energy (NYSE:YGE) Continues to Get Punished on Margins

Shares of Yingli Green Energy (NYSE:YGE) continue to get punished on concerns over margins.

Auriga noted, "Our analysis indicates concerns about the margin impact from Fine Silicon depreciation and Panda startup costs are clearly overblown. Although it is hard to ignore the specter of peaking margins, we find the extent of YGE's punishment bewildering. Given YGE's standing at the heart of the solar industry, we see today's compelling price not likely to last much longer...We shift valuation to 2012 estimates and increase our price target to $17, 10x our 2012 EPS estimate of $1.70."

Auriga reiterates a "Buy" on Yingli Green Energy, which closed Tuesday at $10.56, losing $0.09, or 0.85 percent. Auriga raised their price target on them from $13 to $17.