Jefferies Upgrades Sociedad Quimica y Minera (SQM) to Buy, 'Underappreciated company reshaping'

Jefferies analyst Alejandro Demichelis upgraded Sociedad Quimica y Minera (NYSE: SQM) from Hold to Buy with a price target of $62.80 (from $52.00).

The analyst comments "Underappreciated company reshaping: Whilst we remain cautious on lithium prices, we see attractive value emerging in SQM given the reshaping that the company is undergoing. We believe that the market underappreciates 1) its low cash cost advantage in lithium, 2) the potential value uplift from the agreement to extend its Chilean lithium concession out from 2030 to 2060 (due to be signed off in May-24); and 3) the increased growth optionality that internationalization of the business brings. Clearly none of these elements will change SQM’s near term earnings, but we believe that they should put the company on a much stronger competitive footing over the coming years."

For an analyst ratings summary and ratings history on Sociedad Quimica y Minera click here. For more ratings news on Sociedad Quimica y Minera click here.

Shares of Sociedad Quimica y Minera closed at $47.61 yesterday.

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