Update shared on12 Sep 2025
Fair value Increased 4.09%Analysts have raised Daqo New Energy's price target from $24.43 to $25.43, citing improved earnings prospects from higher polysilicon prices, stronger operating cash flow, and favorable regulatory changes expected to benefit the company’s competitive position in China.
Analyst Commentary
- Bullish analysts increased profit estimates based on higher polysilicon prices and improved operating cash flow, alongside reduced capital spending.
- Upgrades to Buy ratings reflect a constructive outlook on Daqo's earnings potential, despite previous underperformance.
- Some analysts argue Q2 weakness was temporary and strategic, expecting significant earnings growth in the second half of the year due to management’s forward guidance.
- Expectations of policy-driven market restructuring in China, including production quotas for major producers and forced closures of smaller competitors, are seen as favorable to Daqo's market position.
- The stock's upside potential is reaffirmed by anticipated industry rationalization and the company’s advantageous positioning amid evolving regulatory dynamics.
What's in the News
- The Board of Directors authorized a share buyback plan.
- The company announced a share repurchase program to buy back up to $100 million of shares or ADSs, funded primarily with existing cash and valid through December 31, 2026.
- Production guidance for Q3 2025 is 27,000 MT to 30,000 MT of polysilicon; full-year 2025 guidance is 110,000 MT to 140,000 MT, including the impact of annual facility maintenance.
Valuation Changes
Summary of Valuation Changes for Daqo New Energy
- The Consensus Analyst Price Target has risen slightly from $24.43 to $25.43.
- The Future P/E for Daqo New Energy has risen from 10.16x to 10.70x.
- The Discount Rate for Daqo New Energy remained effectively unchanged, moving only marginally from 11.00% to 10.88%.
Disclaimer
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