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Investing.com - Jefferies raised its price target on Sociedad Quimica y Minera (NYSE:SQM) to $53.00 from $48.00 on Wednesday, while maintaining a Buy rating on the Chilean chemical company’s stock. The company, with a market capitalization of $12.9 billion, has shown strong momentum with a 23.9% year-to-date return and is currently trading near its 52-week high of $47.39.
The price target increase follows what Jefferies described as "lacklustre" second-quarter 2025 results for SQM, though the firm noted the company’s outlook appears to be improving. According to InvestingPro analysis, the stock currently trades at a P/E ratio of 18x and shows signs of being slightly undervalued based on its Fair Value model.
Jefferies highlighted that recent lithium price increases should be supported by SQM’s "more restrained volume growth ambitions," providing a positive catalyst for the company’s performance.
The research firm also pointed to SQM’s Iodine division, which represents approximately 50% of gross profit, noting it "should enjoy sustained prices" in the second half of 2025.
Jefferies confirmed that SQM’s deal with Codelco remains on track for completion in September or October, and the firm has increased its 2025-26 EBITDA estimates for SQM by 5%.
In other recent news, Sociedad Quimica y Minera de Chile SA (SQM) reported its earnings for the second quarter of 2025, showcasing a notable performance. The company achieved an earnings per share (EPS) of $0.79, significantly exceeding the projected $0.58 by 36.21%. Despite this strong earnings report, the company’s stock saw a decline in pre-market trading, suggesting mixed reactions from investors. Additionally, BMO Capital raised its price target for SQM to $55.00 from $45.00, while maintaining an Outperform rating. This adjustment reflects BMO’s revised lithium price forecasts, taking into account the current market’s improved spot prices and futures. These developments highlight the dynamic factors influencing SQM’s market position and investor sentiment.
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