UPDATE 2-Yingli sees higher shipments; shares soar

(Adds analyst comment, updates share activity, changes dateline previous NEW YORK)

LOS ANGELES, Feb 4 (Reuters) - Chinese solar cell maker Yingli Green Energy Holding Co Ltd (YGE.N: Quote, Profile, Research) said on Monday it expects to ship between 255 and 265 megawatts of photovoltaic modules in 2008, lifting its shares more than 17 percent.

Yingli reached capacity of 200 megawatts in mid-2007.

Photovoltaic cells, which convert sunlight to electricity, are packaged together to form the modules that make up solar panels.

Based on its 2008 forecast, Yingli said it had secured more than 70 percent of the polysilicon, the industry's key raw ingredient, needed to make the modules.

Tight supplies of polysilicon have pushed prices for the material higher over the past year, pressuring solar companies' margins.

Oppenheimer analyst Adam Hinckley said he was concerned that, according to Yingli's polysilicon contract, prices will be renegotiated based on spot polysilicon pricing, which is rising.

"We believe Yingli is well positioned in the longer term, but that polysilicon costs will hinder share upside in the near term," Hinckley said in a client note. He has a "perform" rating on the company's shares.

Yingli's stock has slid 38 percent since the beginning of the year as investors have fretted that a sluggish U.S. economy and falling oil prices would dampen demand for renewable energy sources. Fears about an impending oversupply of photovoltaic modules have also weighed on solar stocks.