Daqo New Energy Faces Ongoing Litigation Challenges

Daqo New Energy ( (DQ) ) has shared an announcement.

Daqo New Energy’s subsidiary, Xinjiang Daqo, is embroiled in an ongoing litigation with Xinjiang Xian’an New Materials Co., Ltd. and its affiliate over a contract dispute. The lawsuit, which began in April 2024, involves claims for economic losses and consequential damages. A recent court summons indicates that the plaintiffs are appealing a previous court decision, seeking compensation of RMB744.9 million. The outcome of this legal battle could significantly impact Xinjiang Daqo’s financial obligations and operational focus.

The most recent analyst rating on (DQ) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Daqo New Energy stock, see the DQ Stock Forecast page.

Spark’s Take on DQ Stock

According to Spark, TipRanks’ AI Analyst, DQ is a Neutral.

Daqo New Energy’s overall stock score reflects a challenging financial and operational environment. Declining revenues and profitability, along with negative cash flow, weigh heavily on the financial performance. Technical analysis indicates bearish momentum with the stock trading below key moving averages. Valuation concerns arise from a negative P/E ratio and lack of dividend yield. Despite a strong balance sheet with no debt, the short-term outlook remains uncertain given market conditions and operational challenges.

To see Spark’s full report on DQ stock, click here.

More about Daqo New Energy

Daqo New Energy Corp. operates in the renewable energy sector, primarily focusing on the production of high-purity polysilicon, a key component in solar panel manufacturing. The company is based in China and serves a global market, contributing to the solar energy supply chain.

Average Trading Volume: 1,359,961

Technical Sentiment Signal: Buy

Current Market Cap: $1.89B

For a thorough assessment of DQ stock, go to TipRanks’ Stock Analysis page.