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Investing.com - BMO Capital raised its price target on Sociedad Quimica y Minera (NYSE:SQM) to $55.00 from $45.00 on Wednesday, while maintaining an Outperform rating on the Chilean lithium producer. The company, currently valued at $12.9 billion, trades near its 52-week high of $47.39, having delivered a strong 23.9% return year-to-date.
The price target increase reflects BMO’s updated lithium price forecasts, which account for improved spot prices and futures in the current market.
BMO’s target price represents approximately 11 times the company’s expected 2025 EV/EBITDA ratio, which the firm notes is lower than SQM’s industry peers.
The target also equates to roughly 5.5-6 times the expected 2027 EV/EBITDA ratio, according to BMO’s analysis.
BMO Capital maintains that the risk/reward profile for SQM "swings to the upside," supporting its continued Outperform rating on the stock.
In other recent news, Sociedad Quimica y Minera de Chile SA (SQM) reported its earnings for the second quarter of 2025. The company achieved an earnings per share (EPS) of $0.79, which exceeded analysts’ expectations of $0.58 by 36.21%. Despite this positive earnings report, the stock saw a decline in pre-market trading, indicating a complex investor reaction. These developments highlight the mixed sentiment surrounding the company’s recent performance. Investors might be considering various factors beyond the earnings beat, which could include broader market conditions or other company-specific news. The earnings report is a significant factor for investors as they assess the company’s financial health. Analysts and investors will likely continue to monitor SQM’s performance closely in the coming quarters.
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