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Wall Street Divided: Daqo New Energy Faces Target Wars
5 Oct
Summary
- Daqo's fair value estimate was significantly reduced by approximately 18%.
- Analysts remain divided with price targets ranging from $10 to $22.
- The company issued new production guidance for polysilicon output for 2026.
Daqo New Energy has experienced a notable adjustment in its valuation, with its fair value estimate decreasing by approximately 18%, from $23.95 to $19.65. This recalibration has intensified the debate among analysts, whose price targets now span a considerable range, from a low of $10 to a high of $22. This divergence underscores varying perspectives on the company's risk and reward profile, particularly following recent weaker financial results.
Recent developments impacting Daqo New Energy include its removal from the FTSE All World Index in U.S. dollar terms, potentially affecting investment flows from index-tracking funds. The company has also provided its production outlook for 2026. Specifically, it anticipates an output of 40,000 to 45,000 metric tons of polysilicon for the third quarter and a full-year total ranging from 160,000 to 180,000 metric tons, which accounts for scheduled facility maintenance.
Further adding to the evolving narrative, news has emerged regarding potential U.S. government actions. Reports indicate that the U.S. is preparing to implement a price floor and tariffs on polysilicon, a move aimed at bolstering domestic manufacturing. Daqo New Energy has been identified as one of the companies likely to be affected by these forthcoming trade policies.
