DQ Stock Forecast & Price Target

Daqo New Energy Corp is poised for substantial revenue growth, with forecasts indicating a 15% increase in revenue for 2026, reaching approximately $892 million, and a further 21% rise anticipated for 2027, totaling around $1,059 million. The company's liquidity appears strong, with quick assets rising by approximately 8% quarter-over-quarter in Q3, reflecting improved financial stability at around $2.2 billion. Additionally, management expects average selling prices (ASPs) for polysilicon to escalate significantly due to market consolidation, potentially reaching RMB 60-80/kg, which would enhance gross margins and contribute positively to adjusted EBITDA, projected to rise to $283 million.

Daqo New Energy's financial outlook is negatively impacted by a severe year-over-year decline in monthly installations, with reported decreases of 40.3% in June and escalating to 55.3% in August, indicating a persistent demand drop following recent policy changes. Additionally, the company's revenues may be jeopardized by a substantial drop in polysilicon prices, which have sharply retraced to CNY$48.5/kg, coupled with continued downside risks due to oversupply and falling downstream prices. The market sentiment is further backed by forecasts indicating sustained weak pricing pressure and increased competition, raising concerns about the company's future profitability and market position.