Sociedad Quimica y Minera stock price target raised by BofA to $43.50

Investing.com - BofA Securities raised its price target on Sociedad Quimica y Minera (NYSE:SQM) to $43.50 from $36.50 on Tuesday, while maintaining an Underperform rating on the Chilean lithium producer. According to InvestingPro data, SQM currently trades at $46.65, with a market capitalization of $12.9 billion. The stock appears slightly undervalued based on InvestingPro’s comprehensive Fair Value analysis.

The price target increase follows a 28% rally in SQM shares during August, which outpaced the 16% rise in spot lithium carbonate prices in China to $11,300 per ton. BofA noted that investor sentiment toward the sector has shifted dramatically from bearish to bullish. The stock is currently trading near its 52-week high of $47.51, with InvestingPro analysis showing strong financial health metrics and eight additional key insights available to subscribers.

The firm acknowledged that the new lithium price levels appear more sustainable compared to previous supply cut announcements, which has triggered upward earnings revisions and short covering in SQM stock.

Despite the higher price target, BofA maintained its Underperform rating, citing concerns that the recent stock move was excessive with an unfavorable risk/return profile. The firm identified three specific risks: further lithium price upside depends on additional Chinese supply cuts in September, SQM’s valuation relative to peers is unattractive, and the stock is pricing in lithium well above spot levels for 2026.

BofA also highlighted ongoing mid-term risks to SQM stemming from its deal with Chilean state copper producer Codelco.

In other recent news, Sociedad Quimica y Minera de Chile SA (SQM) reported impressive financial results for the second quarter of 2025. The company achieved earnings per share of $0.79, exceeding analysts’ expectations of $0.58. Additionally, SQM’s revenue reached $2.08 billion, significantly surpassing the anticipated $1.08 billion. These figures highlight a strong performance for the quarter. Despite these positive results, broader market volatility and sector-specific challenges have been noted. There is no mention of any mergers or acquisitions in the recent updates. Analyst firms have not reported any upgrades or downgrades for SQM in this period. The focus remains on the company’s financial achievements amidst a challenging market environment.

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