Daqo New Energy (DQ) stock is soaring 5.02% in pre-market trading on Thursday, as China's solar industry receives a boost from Beijing's efforts to calm price wars and an analyst upgrade.

The surge comes amid a broader rally in Chinese solar stocks, triggered by recent government moves to address aggressive price cutting in the industry. Beijing has pledged to curb price wars and phase out outdated capacity in the solar sector, a response to concerns about deflation risks in the world's second-largest economy. This initiative has led to a significant uptick in solar component prices, with polysilicon seeing a sharp rise of 18% to 21% over the past two weeks, according to Citi analyst Pierre Lau.

Adding to the positive sentiment, GLJ Research analyst Gordon Johnson has upgraded Daqo New Energy from Sell to Buy, setting a price target of $30.51, which implies a potential 61% upside. This upgrade reflects growing optimism about the company's prospects in light of the new supportive policies from China. As one of the major players in the polysilicon market, Daqo New Energy stands to benefit from the government's efforts to stabilize prices and promote sustainable growth in the solar industry.