We analyze the stability of the Euclidean Witten black hole (the cigar
soliton in mathematics literature) under first-order RG (Ricci) flow of the
world-sheet sigma model. This analysis is from the target space point of view.
We find that the Witten black hole has no unstable normalizable perturbative
modes in a linearized mode analysis in which we consider circularly symmetric
perturbations. Finally, we discuss a result from mathematics that implies the
existence of a non-normalizable mode of the Witten black hole under which the
geometry flows to the sausage solution studied by Fateev, Onofri and
Zamolodchikov.Comment: 17 pages, version to appear in Physical Review D, and now has
complete proof of stability for circularly symmetric perturbations, in
response to referee comment