Citigroup Forecasts Strong Price Appreciation for DAQO New Energy (NYSE:DQ) Stock

Key Points

• Citigroup has raised its price target for DAQO New Energy from $27.00 to $37.00, indicating a potential upside of 30.59% based on the stock's previous close.
• Despite the positive outlook from Citigroup, DAQO New Energy’s stock has seen mixed ratings from analysts, with one research firm downgrading it to a "sell" while others have assigned "buy" ratings.
• The company recently reported a quarterly EPS of ($1.14), beating estimates, but reported a significant revenue miss of $75.19 million compared to expectations of $140.54 million.

DAQO New Energy (NYSE:DQ - Get Free Report) had its price target raised by investment analysts at Citigroup from $27.00 to $37.00 in a report issued on Monday,Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. Citigroup's target price would suggest a potential upside of 30.59% from the company's previous close.

DQ has been the subject of a number of other reports. Wall Street Zen cut DAQO New Energy from a "hold" rating to a "sell" rating in a research note on Sunday. HSBC raised DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 target price on the stock in a research report on Wednesday, August 27th. Hsbc Global Res upgraded DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 27th. Finally, Glj Research reiterated a "buy" rating and issued a $30.51 price target on shares of DAQO New Energy in a research note on Tuesday, August 26th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, DAQO New Energy presently has a consensus rating of "Buy" and a consensus price target of $28.10.

DAQO New Energy Stock Down 3.0%

DQ traded down $0.88 during trading on Monday, hitting $28.33. The company's stock had a trading volume of 409,794 shares, compared to its average volume of 1,019,223. The firm's 50 day moving average price is $21.91 and its two-hundred day moving average price is $17.87. DAQO New Energy has a 12 month low of $12.40 and a 12 month high of $30.85. The stock has a market capitalization of $1.90 billion, a price-to-earnings ratio of -4.88 and a beta of 0.50.

DAQO New Energy (NYSE:DQ - Get Free Report) last released its earnings results on Tuesday, August 26th. The semiconductor company reported ($1.14) EPS for the quarter, beating the consensus estimate of ($1.16) by $0.02. The company had revenue of $75.19 million during the quarter, compared to analysts' expectations of $140.54 million. DAQO New Energy had a negative return on equity of 6.54% and a negative net margin of 65.64%. On average, sell-side analysts forecast that DAQO New Energy will post -3.5 earnings per share for the current year.

DAQO New Energy declared that its Board of Directors has authorized a stock buyback plan on Tuesday, August 26th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the semiconductor company to buy shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On DAQO New Energy

Large investors have recently added to or reduced their stakes in the business. Headlands Technologies LLC bought a new position in DAQO New Energy in the 2nd quarter valued at about $29,000. Caitong International Asset Management Co. Ltd lifted its position in DAQO New Energy by 86,700.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,736 shares of the semiconductor company's stock valued at $31,000 after acquiring an additional 1,734 shares in the last quarter. Virtu Financial LLC bought a new position in DAQO New Energy in the 1st quarter valued at about $187,000. Vident Advisory LLC bought a new position in DAQO New Energy in the 1st quarter valued at about $216,000. Finally, Harvest Portfolios Group Inc. bought a new position in DAQO New Energy in the 1st quarter valued at about $305,000. Institutional investors own 47.22% of the company's stock.

DAQO New Energy Company Profile

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufacturers in the People's Republic of China. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp.

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