Daqo New Energy: Deeply Undervalued Amid Short-Term Challenges
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Daqo New Energy is currently facing short-term challenges due to a decline in polysilicon prices, affecting its revenue and profitability for FY24. However, the company is considered deeply undervalued, with a strong balance sheet and expected long-term demand growth for solar panels. Polysilicon prices are anticipated to recover by the second half of FY25.
December 07, 2024 | 8:00 am
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Daqo New Energy is facing short-term revenue and profitability challenges due to declining polysilicon prices. Despite this, the company is considered undervalued with strong long-term growth prospects in the solar panel market.
The decline in polysilicon prices is negatively impacting Daqo's short-term financial performance. However, the company's strong balance sheet and the expected recovery in polysilicon prices by H2 FY25, along with long-term demand growth for solar panels, make it an attractive investment. This supports a positive outlook for DQ's stock price in the long term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100