HSBC Upgrades Daqo New Energy to Buy with $31 Price Target

HSBC upgraded Daqo New Energy to Buy from Hold with a $31 price target.

HSBC Holdings plc has recently upgraded its rating for Daqo New Energy (NYSE: DQ) from Hold to Buy, setting a new price target of $31. This move comes ahead of Daqo New Energy's Q2 earnings release on August 26, following the market close. The upgrade reflects HSBC's positive outlook on the company's financial health and operational performance.

According to the latest earnings preview, Daqo New Energy is expected to report an EPS of -$0.42 and revenue of $140.54 million for the second quarter of 2025 [1]. Historically, Daqo New Energy has demonstrated a strong track record of meeting or exceeding analyst expectations, with a 50% success rate in beating EPS estimates and a 63% success rate in surpassing revenue estimates over the past two years [1].

Institutional investors have shown significant interest in Daqo New Energy, with 45 institutional investors adding shares to their portfolios in the most recent quarter, while 89 decreased their positions [1]. Major institutions such as Goldman Sachs Group Inc., Morgan Stanley, and SG Americas Securities have made notable adjustments to their holdings [1].

Analysts have issued a mix of ratings for Daqo New Energy, with no sell ratings and only one buy rating in the last several months [1]. Price targets from analysts range from $27.0 to $30.51, with a median target of $28.755 [1]. However, GuruFocus estimates a potential downside, with a one-year GF Value of $11.65, indicating a 51.5% decline from the current trading price [1].

HSBC's upgrade to Buy, coupled with a $31 price target, suggests that the investment bank believes Daqo New Energy is poised for a modest upside from current levels. Investors should closely monitor the company's Q2 earnings report for further insights into its operational performance and future prospects.

References:
[1] https://www.ainvest.com/news/daqo-energy-q2-earnings-preview-revenue-estimate-140-54m-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-kovitz-investment-group-partners-llc-takes-position-in-hsbc-holdings-plc-hsbc-2025-08-23/