Asia stocks climb tracking Wall St rally; Nikkei hits record high, China GDP beats
Investing.com - BMO Capital reiterated an Outperform rating on Sociedad Quimica y Minera (NYSE:SQM) with a $100.00 price target.
The firm said the company remains well positioned for a stronger lithium dynamic with growing lithium capacity in 2026 despite Australian conversion issues similar to peers. The Codelco joint venture has been finalized.
BMO believes the shares offer attractive upside even if lithium prices fall from current spot levels above $20,000 per ton to approximately $16,000 per ton in its mid-cycle 2027 price deck. The stock currently trades at $68.80, down 13.5% over the past week, though it has delivered a strong 79% return over the last year.
The $100 price target implies approximately 9 times 2026 EV/EBITDA assuming prices fall to $16,000 per ton by year-end. The multiple would be approximately 7.5 times at spot lithium prices.
The firm maintained its Outperform rating on the Chilean lithium producer.
In other recent news, Sociedad Quimica y Minera de Chile SA (SQM) reported its fourth-quarter 2025 earnings, revealing a mixed financial performance. The company posted an earnings per share (EPS) of $0.64, which fell short of the $0.7988 forecast, representing a negative surprise of 19.88%. However, SQM’s revenue exceeded expectations, coming in at $1.32 billion against a forecast of $1.22 billion, marking an 8.2% increase. Despite the revenue beat, the earnings miss led to a decline in SQM’s stock in premarket trading, reflecting investor concerns. Additionally, shares of lithium mining companies, including SQM, have been affected by weaker sales from major electric vehicle manufacturers and rising tensions in the Middle East, which have impacted demand prospects. The most-active lithium carbonate contract on the Guangzhou Futures Exchange fell 12.99%, nearing its daily limit. These developments underscore the challenges faced by lithium miners amid fluctuating market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.