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Sociedad Química y Minera de Chile (SQM), a leading global supplier of plant nutrients, iodine, lithium, and industrial chemicals, saw its stock price touch a 52-week low, dipping to $32.19. According to InvestingPro data, the company maintains strong fundamentals with a healthy current ratio of 2.51 and annual revenue of $4.53 billion. Technical indicators suggest the stock is currently in oversold territory. This latest price level reflects a significant downturn from the company's performance over the past year, with SQM's ADR experiencing a 1-year change decrease of -37.33%. Investors are closely monitoring the stock as it navigates through market volatility and industry-specific challenges. The 52-week low serves as a critical point of interest for potential buyers looking for entry points and for current shareholders assessing their investment strategies in the context of the company's long-term growth prospects. Notably, SQM has maintained dividend payments for 31 consecutive years, demonstrating consistent shareholder returns. InvestingPro analysis suggests the stock is currently undervalued, with analysts projecting a return to profitability this year. For deeper insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering detailed analysis of SQM among 1,400+ top stocks.
In other recent news, Sociedad Quimica y Minera (SQM) has been the focus of several analyst updates following its fourth-quarter 2024 earnings announcement. The company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $318 million, which was 5% below estimates and marked a 23% year-over-year decline. Despite achieving revenues of $1.07 billion, 10% higher than BofA Securities' forecasts, SQM's financial performance was impacted by narrower gross margins and increased expenses. BofA Securities subsequently lowered its price target for SQM to $37 while maintaining an Underperform rating.
In contrast, Jefferies raised its price target for SQM to $55, maintaining a Buy rating, due to progress in the company's joint venture with Codelco and positive developments in the lithium market. Citi also adjusted its price target to $54 from $60, yet kept a Buy rating, citing expected robust lithium demand growth and increased sales volume for SQM. Citi projects a significant decrease in SQM's EBITDA for 2024 but anticipates a 24% year-over-year increase in 2025. These recent developments reflect varying analyst perspectives on SQM's financial outlook and market position.
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