Goldman Sachs analyst Chao Ji downgraded Daqo New Energy to Neutral from Buy with a price target of $70, down from $140. Due to capacity expansion in the industry, poly prices started to decrease in November, which may weigh on Daqo’s margin, Ji tells investors in a research note. The analyst believes the stock is fairly valued comparing its historical valuation multiple to the average of past three down-cycles. Ji sees Daqo’s risk/reward as balanced given a moderated poly price outlook.
Published first on TheFly
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