Citi Upgrades Sociedad Quimica y Minera (SQM) to Buy

Citi analyst P.J. Juvekar upgraded Sociedad Quimica y Minera (NYSE: SQM) from Neutral to Buy.

The analyst commented, "We are turning more bullish on lithium due to: EV momentum in China and Europe, the dissipation of excess lithium inventory, and announcements by OEMs like GM to go all-electric by 2035. We expect this momentum to continue as several lithium projects were delayed over the last two years. Also, ALB’s recent update on lithium was encouraging. Our view remains that 2021 is the year of volumes and 2022 will be the year of price. We caution that the spike in spot China prices will not benefit western companies immediately as they have long-term contracts. SQM has the most exposure to spot prices and should benefit first. For ALB, in addition to the Lithium segment, we like its Bromine and Catalysts divisions which are “cash cows” which should support lithium growth."

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 $55.48 yesterday.

You May Also Be Interested In

• BofA Securities Upgrades Tesla (TSLA) to Buy on wind up of positive catalysts
• Danaher (DHR) PT Raised to $271 at Baird
• Mizuho Upgrades Airbnb Inc. (ABNB) to Buy, 'We see opportunities'