Shares of Daqo New Energy Corp. (NYSE: DQ), a leading producer of polysilicon for solar panels, tumbled 7.13% on Thursday, despite a recent bullish analyst report outlining the company's potential for significant upside.
The stock's plunge came as a surprise, given the positive outlook presented by analysts at "From $100K to $1M" & More. The report highlighted Daqo's impressive financial metrics, including robust free cash flow margins, high return on invested capital, and a strong net cash position of $2.7 billion as of March 31, 2024.
However, the broader market sentiment and concerns over the cyclical nature of the polysilicon industry may have contributed to the sell-off. Polysilicon prices have experienced a sharp decline of approximately 80% from their recent peak, raising fears of a prolonged downturn in the industry.
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