In a report released today, Gordon Johnson from GLJ Research reiterated a Buy rating on Daqo New Energy, with a price target of $30.51.
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Gordon Johnson has given his Buy rating due to a combination of factors that suggest a positive outlook for Daqo New Energy. One of the key reasons is the potential rationalization of a significant portion of China’s poly-Si capacity, which could shift the market from a surplus to a deficit. This structural change is expected to create a favorable environment for Daqo New Energy, as it would lead to increased demand for their products.
Additionally, recent surges in poly-Si spot prices indicate a growing market interest, further supporting the company’s prospects. Despite the short-term impact of the Invesco Solar TAN ETF’s performance on Daqo’s U.S.-listed ADR shares, the underlying fundamentals appear strong. The market dynamics and the anticipated undersupply in the poly-Si market are likely to benefit Daqo New Energy in the medium to long term.
Johnson covers the Technology sector, focusing on stocks such as SolarEdge Technologies, Daqo New Energy, and Sunrun. According to TipRanks, Johnson has an average return of -5.8% and a 55.16% success rate on recommended stocks.
In another report released on July 18, Citi also initiated coverage with a Buy rating on the stock with a $27.00 price target.