Bitcoin set for a rebound that could stretch toward $100000, BTIG says
Investing.com - BMO Capital raised its price target on Sociedad Quimica y Minera (NYSE:SQM) to $77.00 from $55.00 on Wednesday, while maintaining an Outperform rating on the Chilean lithium producer’s stock. SQM shares are currently trading at $63.40, having surged 12.52% in the past week and 71.83% over the last six months, according to InvestingPro data.
The significant price target increase comes as lithium prices have been strengthening, with spot and near-term futures rising strongly across the second half of 2025 to approximately $12,500-14,000 per ton.
BMO Capital based its new target on approximately 7.5-8x 2027E EV/EBITDA, assuming lithium average selling prices of around $16,000 per ton, which aligns with the firm’s mid-cycle lithium carbonate equivalent price forecast. For context, SQM’s current EV/EBITDA ratio stands at 13.17x based on last twelve months’ data.
The research firm noted that its target multiple for SQM represents a discount to the approximately 10x multiple it uses for Albemarle, reflecting SQM’s traditional trading discount compared to its competitor.
BMO Capital indicated that this discount may narrow upon the closure of the seemingly near-imminent joint venture between Codelco and SQM, adding that current lithium price strength appears to be driven by incremental demand from energy storage systems.
In other recent news, Sociedad Quimica y Minera de Chile SA (SQM) reported its third-quarter earnings for 2025, highlighting a strong performance primarily due to record lithium sales. The company exceeded market expectations, particularly in earnings per share (EPS), which contributed to a favorable reaction in the market. This robust performance was supported by a beneficial pricing environment. These developments come as SQM continues to capitalize on the growing demand for lithium. The company’s financial results have garnered attention from analysts and investors alike, underscoring its strategic positioning in the market. SQM’s achievements in this quarter reflect its ability to leverage market conditions effectively. These results are part of the recent developments surrounding the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.