Daqo New Energy: GLJ Research raises PT to $30.51, maintains Buy rating.

Daqo New Energy: GLJ Research raises PT to $30.51, maintains Buy rating.

Daqo New Energy Corp., a leading polysilicon manufacturer, has seen its second quarter earnings report spark a mixed reaction in the market. The company reported a significant revenue shortfall, missing expectations by 42.38% [3]. Despite the revenue miss, the stock saw a 4.55% increase in premarket trading, reaching $24.51. This suggests that investors are optimistic about the company's future prospects, possibly influenced by its cost-cutting measures and strategic initiatives.

GLJ Research, a prominent financial research firm, has responded to the earnings report by raising its price target for Daqo New Energy shares to $30.51, maintaining its Buy rating. The research firm argues that while the company missed its revenue target, the forward guidance implies "explosive earnings growth in the back half of the year" [2]. GLJ Research contends that the market is "missing the forest for the trees" by focusing too much on China's anti-involution policy and not enough on the company's forward guidance.

Daqo New Energy faced a challenging second quarter, with revenues declining to $75.2 million from $123.9 million in Q1 2025. The company anticipates industry consolidation and regulatory changes, which it believes will stabilize the market. The company's stock price remains within its 52-week range, with a high of $30.85 and a low of $12.41 [3].

The company's strong financial position, with a cash balance of $599 million as of June 30, 2025, provides it with ample financial liquidity to navigate the current market downturn. Daqo New Energy has also authorized a $100 million share repurchase program, signaling confidence in its long-term value [3].

References:
1. [1] https://www.marketscreener.com/news/earnings-flash-dq-daqo-new-energy-corp-reports-q2-loss-of-1-14-per-ads-ce7c50d9d88af622
2. [2] https://www.tipranks.com/news/the-fly/glj-says-street-missing-the-forest-for-the-trees-on-daqo-new-energy-thefly
3. [3] https://www.investing.com/news/transcripts/earnings-call-transcript-daqo-new-energy-q2-2025-reports-revenue-miss-93CH-4211022