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Daqo New Energy (DQ) has seen mixed share performance recently, with a slight 1 day move, a small 7 day decline, a sharper pullback over the past month, and a more moderate drop across the past 3 months.
See our latest analysis for Daqo New Energy.
Looking beyond the recent pullback, Daqo New Energy’s share price return has been weak year to date, yet the 1 year total shareholder return of 35.54% points to a stock where momentum has cooled after a stronger stretch.
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With Daqo New Energy trading at US$25.59 and sitting at a discount to some analysts’ targets after years of weak multi year returns, you have to ask: is this genuine value, or is the market already pricing in any recovery?
At a last close of US$25.59 versus a narrative fair value of about US$33.04, the widely followed view frames Daqo New Energy as materially discounted, built on specific assumptions about growth, margins, and future market conditions rather than short term sentiment.
Daqo’s strategic focus on enhancing N-type polysilicon technology and ongoing cost reduction (through operational efficiency, digital transformation, and AI adoption) is expected to expand its market share in the premium segment and improve net margins as technology demands evolve.
Curious what earnings profile could justify that gap to fair value? Revenue ramps, margin repair, and a lower future P/E multiple all sit at the core. The full narrative lays out how these pieces fit together over time.
Result: Fair Value of $33.04 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this hinges on industry capacity actually tightening and losses easing, because prolonged oversupply or continued operating losses could quickly undermine that 22.6% undervalued story.
Find out about the key risks to this Daqo New Energy narrative.
If you see the numbers differently or would rather test your own assumptions, you can build a personalised Daqo view in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Daqo New Energy.
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