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Daqo New Energy Fair Value Cut 18% as JPMorgan and Goldman Split on Rating
Daqo New Energy's fair value estimate has been trimmed from about US$23.95 to about US$19.65, an adjustment of roughly 18%, as analysts remain sharply divided on the stock. JPMorgan maintains an Overweight rating with a revised US$22 price target, still above the updated fair value estimate, while Goldman Sachs shifted to a Sell rating with a reduced US$10 target, citing a Q2 non GAAP net loss driven by lower recognized average selling prices and higher SG&A expenses. The company issued new production guidance for the third quarter of 2026 targeting polysilicon output of about 40,000 MT to 45,000 MT, and for the full year 2026 guided to polysilicon production of about 160,000 MT to 180,000 MT, including the impact of annual facility maintenance. Daqo New Energy was also removed from the FTSE All World Index in US$ terms, and Reuters reported that the U.S. government is preparing a price floor and tariffs on polysilicon to support domestic factories, with Daqo New Energy cited among the companies expected to be affected. In the updated model, revenue growth was trimmed from about 32.87% to about 30.82%, net profit margin moved from about 1.77% to about 6.50%, the future P/E was cut from about 97.65x to about 23.46x, and the discount rate edged higher from about 12.27% to about 12.37%.
DQ · Capital · Neutral Fair value cut ~18% with JPMorgan Overweight ($22 target) vs Goldman Sell ($10 target) after Q2 non-GAAP net loss on lower ASPs and higher SG&A.
DQ · Tariff · Negative US government preparing a polysilicon price floor and tariffs, with Daqo cited among companies expected to be affected.
688303.CG · Capital · Neutral Parent Daqo New Energy's fair value cut and split analyst ratings (JPMorgan Overweight vs Goldman Sell) after a Q2 net loss.
688303.CG · Tariff · Negative US polysilicon price floor and tariffs cited as affecting Daqo New Energy, the parent of Xinjiang Daqo.