On Wednesday, Daqo New Energy Corp (NYSE:DQ), a leading manufacturer of high-purity polysilicon for the global solar PV industry, received an updated price target from Jefferies. The firm raised its price target on the stock to $35.54, up from the previous $34.05, while maintaining a "Buy" rating.
The adjustment follows Daqo New Energy's third-quarter financial results, which revealed a net loss of $61 million. This figure represents an improvement over the second quarter's net loss of $120 million and was better than market expectations, particularly considering the declining market average selling price (ASP) quarter over quarter.
Daqo New Energy's production volume for the third quarter decreased to 44 kilotons, down from 65 kilotons in the second quarter. However, this was anticipated as the company had provided guidance of 43 to 46 kilotons for the period. Sales volume also saw a slight decrease, coming in at 42 kilotons compared to 43 kilotons in the previous quarter.
In response to the current market conditions where the market price is below the cash cost, Daqo New Energy has revised its full-year 2024 production volume guidance downward, from the initial range of 210-220 kilotons to 200-210 kilotons. The company also set its fourth-quarter volume guidance at 31 to 34 kilotons as a measure to preserve cash.
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