SQM stock rises as lithium prices surge amid export tax changes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 Jan 26
Source: seekingalpha
SQM's stock price increased by 4.44% as it reached a 52-week high.
The surge in SQM's stock is attributed to a 9% increase in lithium prices following China's announcement to roll back VAT export rebates for battery products, which is expected to boost lithium demand significantly. This positive market reaction reflects investor confidence in the lithium sector, with SQM benefiting from the anticipated rise in battery production and exports.
The outlook for SQM remains strong as the company is well-positioned to capitalize on the increasing demand for lithium, driven by changes in export policies and market dynamics.
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.
