Jefferies Lowers SQM Price Target but Keeps Buy Rating

On Wednesday, May 28, Jefferies analyst Alejandro Demichelis reduced the price target for Sociedad Química y Minera de Chile SA (NYSE:SQM) from $55 to $51 and maintained a “Buy” rating.

The analyst pointed out that despite the fact that the company reported strong results for Q1 2025, management has suggested a softer short-term outlook for the lithium segment. This weaker outlook for lithium is expected to be partly offset by continued strong performance in the iodine division.

Jefferies Lowers SQM Price Target but Keeps Rating

A laboratory technician pouring a specialty blend of industrial chemicals into a beaker.

The agreement between Codelco and Sociedad Química y Minera de Chile SA (NYSE:SQM) is progressing as planned. This agreement, which is for the production of refined lithium in the Salar de Atacama from 2025 to 2060, is important for the company’s future operations and growth. Demichelis noted that there is some “local political noise,” but the process to finalize the agreement is moving forward.

According to Demichelis, Sociedad Química y Minera de Chile SA (NYSE:SQM) still offers an attractive risk/reward proposition for the medium term. Investors will be carefully watching how the company handles the changing lithium market and leverages its iodine business while also completing strategic deals like the one with Codelco.

Sociedad Química y Minera de Chile SA (NYSE:SQM) is a Chilean chemical company that supplies plant nutrients, iodine, lithium, and industrial chemicals. The company is a global leader in the lithium, iodine, and potassium nitrate markets.

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