HSBC Global Research cut its target price for GCL TECH (03800.HK) to $1.60 from $1.80, representing an 11.1% reduction, but maintained its Buy rating on the polysilicon producer.
The adjustment reflects lower price assumptions amid an industry downturn where peers are selling below cost, the bank said in a research report. HSBC noted that GCL TECH "demonstrates not only cost advantages during the industry's downcycle, but also clearer competitive advantages."
Reflecting the revised price outlook, HSBC lowered its 2026 and 2027 earnings forecasts for GCL TECH by 51% and 27%, respectively. The recent decline in polysilicon prices may persist until government price controls strengthen, a move that HSBC believes should accelerate supply-side consolidation.
The report highlights a difficult near-term environment for the polysilicon sector, with pricing pressure forcing significant earnings revisions. While HSBC's maintained "Buy" rating suggests confidence in GCL TECH's long-term position, the sharp target price cut signals potential for continued stock volatility. Investors will be watching for signs of supply consolidation and price stabilization as the next major catalyst.
This article is for informational purposes only and does not constitute investment advice.
