SQM stock rises amid lithium price surge and market optimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 Jan 26
Source: Coinmarketcap
Sociedad Quimica y Minera de Chile SA (SQM) saw its stock price increase by 3.06% during regular trading, reaching a 52-week high.
The rise in SQM's stock is attributed to a significant surge in lithium prices, which increased by 9% following China's announcement to roll back VAT export rebates for battery products. This policy change is expected to boost lithium demand as exporters prepare for increased shipments, positively impacting the market outlook for lithium miners.
The optimistic sentiment surrounding lithium demand is reflected in the stock performance of SQM and other lithium companies, indicating strong investor confidence in the sector's future growth.
Analyst Views on SQM
Wall Street analysts forecast SQM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SQM is 64.28 USD with a low forecast of 43.50 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
5 Hold
1 Sell
Hold
Current: 84.010
Low
43.50
Averages
64.28
High
80.00
Current: 84.010
Low
43.50
Averages
64.28
High
80.00
About SQM
Sociedad Quimica y Minera de Chile SA (SQM), is a producer of potassium nitrate and iodine. The Company produces specialty plant nutrients, iodine derivatives, lithium and its derivatives, potassium chloride, potassium sulfate and certain industrial chemicals. Its segments include specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services. Specialty plant nutrients are fertilizers that enable farmers to improve yields. Industrial chemicals have a range of applications in chemical processes, such as the manufacturing of glass and industrial nitrates. Iodine and its derivatives are used in the X-ray contrast media and biocides industries, among others. Lithium and its derivatives are used in batteries, greases and frits for production of ceramics. Potassium chloride is a commodity fertilizer that is produced and sold by the Company across the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
