Street Calls of the Week
Investing.com - Rothschild Redburn initiated coverage on Sociedad Quimica y Minera (NYSE:SQM) with a Neutral rating and a $54.00 price target on Friday. The stock, currently trading at $44.52 with a market capitalization of $12.7 billion, shows mixed signals according to InvestingPro data.
The research firm cited concerns about SQM’s high exposure to Chilean lithium royalties through its Salar de Atacama operations, which will continue through 2060 and limit earnings upside from rising lithium prices. Despite these challenges, InvestingPro analysis shows the company maintains a strong financial position with a healthy current ratio of 2.92 and operates with moderate debt levels.
Rothschild Redburn also noted that SQM’s joint venture with Codelco presents additional risks for the Chilean lithium producer.
The firm pointed out that spodumene represents only a small portion of SQM’s portfolio, restricting the company’s exposure to the segment of the lithium market experiencing faster price growth.
Rothschild Redburn’s earnings forecasts for SQM fall below the current market consensus, contributing to its neutral stance on the stock.
In other recent news, Sociedad Quimica y Minera (SQM) reported earnings for the second quarter of 2025 that exceeded expectations. The company achieved an earnings per share (EPS) of $0.79, surpassing the forecast of $0.58, and revenue reached $2.08 billion, significantly higher than the anticipated $1.08 billion. Despite these strong financial results, the company’s stock experienced a decline amid broader market volatility. In terms of analyst coverage, Jefferies downgraded SQM from Buy to Hold, adjusting the price target to $50.00, citing concerns over lithium prices. On the other hand, Itau BBA resumed coverage with an Outperform rating and a $55.00 price target, while acknowledging potential volatility due to supply-side developments. BofA Securities increased its price target to $43.50 from $36.50, although it maintained an Underperform rating. These developments highlight the mixed sentiment among analysts regarding SQM’s future performance.
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