SQM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Based on the provided data, SQM is not a strong buy for a beginner, long-term investor at this moment. While the company has shown strong financial performance in the latest quarter and the lithium market outlook remains positive, the technical indicators, lack of significant trading trends, and mixed analyst ratings suggest a cautious approach. The stock is better suited for monitoring rather than immediate investment.
The MACD is negatively expanding (-1.465), indicating bearish momentum. RSI is neutral at 36.52, and moving averages are converging, suggesting indecision in the market. The stock is trading near its S1 support level of 70.23, with resistance at 74.248. No clear bullish signals are present.
Strong Q3 2025 financial performance with revenue up 8.93% YoY, net income up 35.75% YoY, and EPS up 34.78% YoY.
Positive lithium market outlook with demand expected to grow significantly.
Removal of the Codelco overhang, which previously posed a risk to valuation.
Mixed analyst ratings with recent downgrades citing valuation concerns and potential overpricing of lithium recovery.
Technical indicators suggest bearish momentum.
No significant insider or hedge fund trading trends to support a strong buy case.
In Q3 2025, the company demonstrated strong growth with revenue increasing by 8.93% YoY, net income rising by 35.75% YoY, and EPS growing by 34.78% YoY. Gross margin also improved to 29.48%, up 13.04% YoY.
Recent analyst ratings are mixed. While Deutsche Bank and JPMorgan raised their price targets to $91 and $93 respectively, citing lithium market strength, other firms like Clarksons and Citi downgraded the stock to Neutral, citing valuation concerns and overpricing of lithium recovery. The average price target remains above the current price, but the sentiment is not overwhelmingly bullish.
