Lithium Prices Drive SQM Stock Target Upward
by : JL Collins
Bank of America (BofA) has increased its price target for Sociedad Química y Minera de Chile S.A. (SQM) to $53 from $49, maintaining an Underperform rating. This adjustment reflects a significant 150% surge in lithium prices since last June, attributed to supply constraints and enhanced demand. BofA has also boosted its 2026 EBITDA forecast for SQM by 41% to $3.6 billion, surpassing consensus expectations by approximately 17%. However, BofA warns that the stock's current valuation might be elevated, anticipating lithium prices to peak in 2026.
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