GLJ says Street ‘missing the forest for the trees’ on Daqo New Energy

GLJ Research notes Daqo New Energy (DQ) reported a weak Q2, missing consensus by “a wide margin,” but contends that was “always going to happen” as management deliberately sold less product in Q2 because spot prices were below cost. While the sell-side “spent most of the call obsessing over China’s anti-involution policy,” the firm argues that the “Street is, once again, missing the forest for the trees.” What matters “isn’t policy tea-leaf reading,” it is the company’s forward guidance, which the firm sees implying “explosive earnings growth in the back half of the year.” GLJ keeps a Buy rating and $30.51 year-end 2025 price target on Daqo shares.