SQM Stock Gets $53 Price Target From BofA as Lithium Prices Rally

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is among the Lithium Stocks List: 9 Biggest Lithium Stocks.

On March 25, BofA raised the firm’s price target on Sociedad Química y Minera de Chile S.A. (NYSE:SQM) to $53 from $49 while maintaining an Underperform rating, noting that lithium prices have surged approximately 150% since last June due to supply curtailments and improving demand dynamics. The firm increased its 2026 EBITDA estimate for the company by 41% to $3.6 billion, which stands about 17% above consensus expectations, driven by higher assumed lithium pricing. However, BofA cautions that the current valuation premium appears stretched, as it anticipates lithium prices to peak in 2026, with any subsequent correction likely to be more moderate than in prior cycles.

On February 23, Berenberg also raised its price target on Sociedad Química y Minera de Chile S.A. (NYSE:SQM) to $53 from $47 while maintaining a Hold rating, highlighting that the rebound in lithium prices has more than doubled the share prices of lithium producers from their mid-2025 lows. Despite this recovery, the firm believes that both SQM and its peers are trading above intrinsic value, reflecting elevated expectations embedded in current pricing.

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a Chilean chemical company and a global supplier of lithium, iodine, plant nutrients, and industrial chemicals.

While we acknowledge the potential of SQM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

[/im-yf-promo]

While we acknowledge the risk and potential of SQM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SQM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Best Strong Buy AI Stocks to Invest In Now and 10 Most Undervalued Tech Stocks to Buy According to Analysts.

Disclosure: None.  Follow Insider Monkey on Google News.