Roth Capital Cuts Price target to $35 on Daqo New Energy (DQ) Following 2Q15
Roth Capital maintained a Buy rating on Daqo New Energy (NYSE: DQ), and cut the price target to $35.00 (from $80.00), following the release of its 2Q15 earnings report. DQ posted revenues of $34mn vs consensus of $35mn. DQ guided Q3 sales volume to 2,100-2,200MT.
Analyst Philip Shen commented, "Despite a Q2 EPS beat, low poly pricing continues to serve as the overhang on DQ. That said, we reiterate our DQ thesis: Poly operators can operate below cash costs for only so long, and we expect the end of the tariff loophole to support an improving ASP outlook. Fundamentally, DQ, in our view, is uniquely positioned in China with its industry leading cost structure and quality. Reiterate Buy."
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Shares of Daqo New Energy closed at $15.43 yesterday.